(Bloomberg)—The College of California is investing $500 million extra into Blackstone Inc.’s huge actual property fund for rich buyers, including to a $4 billion dedication earlier this month.

The brand new funding, which is predicted to shut March 1, could have the identical construction, phrases and costs because the college’s preliminary stake in Blackstone Actual Property Earnings Belief, based on a press release Wednesday. These phrases embrace a six-year lock up of the cash, with Blackstone contributing $125 million to assist a minimal 11.25% annual return.

Blackstone constructed BREIT right into a $69 billion actual property behemoth that owns properties from Las Vegas’s Bellagio lodge and on line casino to scholar housing and storage facilities, serving to increase the non-public fairness agency’s attain with wealthy people. However BREIT got here beneath stress final 12 months with extra buyers searching for to tug cash out given the shift in markets, inflicting Blackstone to restrict withdrawals from the belief in December for the primary time.

BREIT’s institutional class shareholders obtained an 8.4% complete return in 2022, when most actual property funds misplaced cash and shares and bonds declined.

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