Key Terms Definitions
|Product||BEPIF is a regulated Luxembourg fund focused on investing in income-generating, substantially stabilized European real estate properties diversified by sector and geography|
There is no guarantee BEPIF will be diversified. Diversification does not eliminate risk or guarantee a profit
|Structure||Luxembourg Alternative Investment Fund |
Passported under AIFMD to Professional Investors across EU, registered under National Private Placement Regime in the U.K., and registered with MAS in Singapore (similar accreditation standard required), and registered for retail marketing in Finland, Italy and Norway2
|Portfolio Allocation3||Approximately 90% in European real estate either through direct investments or units in Blackstone Property Partners Europe, Blackstone’s open-ended European Core+ fund for institutional investors|
Up to 10% in real estate-related debt and liquid instruments
|Minimum Investment||€25k for Professional Investors|
Higher amounts may be required for investor eligibility under local laws
Monthly purchases at NAV as of the first calendar day of each month, with subscription amounts paid upfront; subscription requests must be received at least four business days prior to the first calendar day of the month
Publication of the NAV per share will generally be available within 15 calendar days of month-end
|Distributions||Expected monthly for distributing share classes|
Payment of dividends are at the Board of Directors’ discretion and are not guaranteed
|Redemptions||Redemptions are expected to be offered each month at the NAV per share as of the last calendar day of the month (each a “Redemption Date”). Redemption requests must be provided by 5 p.m. Central European Time on the first business day of the month|
Total redemptions are limited to 2% of aggregate NAV per month (measured using aggregate Fund NAV as of the end of the immediately preceding month) and 5% of aggregate NAV per calendar quarter (measured using the average aggregate Fund NAV as of the end of the immediately preceding three months). The 2% and 5% limits are calculated across BEPIF and its parallel entities
Shares held less than one year will be subject to a 5% deduction from the value of the NAV of the shares being redeemed
Settlements of share redemptions are generally expected to be within 60 calendar days of the Redemption Date
The share redemption plan is subject to other limitations (including the caps above) and BEPIF may make exceptions to, modify, suspend or terminate the planBEPIF invests in assets that may at times be hard to sell. This means that there may be occasions when you experience a delay or receive less than you might otherwise expect when redeeming your shares. For more information on risks, please refer to the Prospectus and Key Information Document (KID)
The use of leverage or borrowings magnifies investment, market, and certain other risks and may have a significant impact on returns, resulting in the partial or total loss of capital invested
Fees and Share Classes
|Share Classes||Class I and Class A with either (i) cash distribution or (ii) accumulation / reinvestment elections|
|Management Fee||1.25% per annum of NAV, payable monthly4|
|Performance Fee||12.5% of annual total return subject to a 5% annual hurdle and high water mark with a 100% catch-up, payable quarterly5|
|AIFM Fee||Approximately 0.05% (and capped at 0.10%) per annum of NAV, payable monthly6|
|Distributor Servicing Fee||None for Class I; 0.75% per annum for Class A, payable monthly to financial intermediaries|
|Subscription Fee||May be charged by certain financial intermediaries|
Additional costs may be incurred as detailed in the fund legal documentation. These costs and charges reduce the potential growth of your investment. Currency fluctuations may have an adverse effect on the costs of the product as a result of changes in exchange rates.
When used on this website and unless otherwise specified or unless the context otherwise requires, references to the “Fund” should be read as references to Blackstone European Property Income Fund SICAV (“BEPIF”), Blackstone European Property Income Fund (Master) FCP and their parallel entities. Capitalized terms used but not defined will have the meanings set forth in the confidential prospectus prepared for BEPIF (the “Prospectus”). Please refer to the Prospectus for further information.
The information above is presented as a summary of certain principal terms only and is qualified in its entirety by the more detailed “Summary of Terms” in the Prospectus. Organizational and Offering Expenses will be advanced by Blackstone through the first year. After BEPIF’s first anniversary, the Fund will reimburse the Organizational and Offering Expenses incurred ratably over the following five years. BEPIF bears all expenses of its operations.
Summary of Key Risk Factors
We have classified this product as 3 out of 7, which is a medium-low risk class. This rates the potential losses from future performance at a medium-low level, and poor market conditions could impact our capacity to pay you. There is no specific recommended holding period for the product. The actual risk can vary significantly. You may not be able to sell your product easily or you may have to sell at a price that significantly impacts how much you get back. The summary risk indicator is a guide to the level of risk of this product compared to other products. It shows how likely it is that the product will lose money because of movements in the markets or because we are not able to pay you.
The attention of potential investors is drawn to the risks to which any investor is exposed by investing in BEPIF. Potential investors should pay particular attention to the risks described in the dedicated section of the Prospectus and Key Information Document (KID). In making an investment decision, investors must rely on their own examination of BEPIF Feeder SICAV and the terms of the offering, including the merits and risks involved. Potential investors should not construe the contents of this website and/or the Prospectus as legal, tax, investment or accounting advice.
The following is a summary description of the principal risks of investing in BEPIF. The order of the below risk factors does not indicate the significance of any particular risk factor. Complete information on the risks of investing in BEPIF is set out in the Prospectus.
Risk of Capital Loss and No Assurance of Investment Return. BEPIF offers no capital protection guarantee. This investment involves a significant risk of capital loss and should only be made if an investor can afford the loss of its entire investment. There are no guarantees or assurances regarding the achievement of investment objectives or performance. This product does not include any protection from future market performance so you could lose some or all of your investment. If we are not able to pay you what is owed, you could lose some or all of your investment. A fund’s performance may be volatile. An investment should only be considered by sophisticated investors who can afford to lose all or a substantial amount of their investment. A fund’s fees and expenses may offset or exceed its profits. In considering any investment performance information contained in this website and the documents linked to it (“the Materials”), recipients should bear in mind that past performance does not predict future returns.
Lack of Liquidity. There is no current public trading market for the shares, and Blackstone does not expect that such a market will ever develop. Therefore, redemption of shares by BEPIF will likely be the only way for you to dispose of your shares. BEPIF expects to redeem shares at a price equal to the applicable net asset value as of the redemption date and not based on the price at which you initially purchased your shares. Shares redeemed within one year of the date of issuance will be redeemed at 95% of the applicable net asset value as of the redemption date, unless such deduction is waived by the Fund in its discretion, including without limitation in case of redemptions resulting from death, qualifying disability or divorce. As a result, you may receive less than the price you paid for your shares when you sell them to BEPIF pursuant to BEPIF’s redemption program.
The vast majority of BEPIF’s assets are expected to consist of real estate properties and other investments that cannot generally be readily liquidated without impacting BEPIF’s ability to realize full value upon their disposition. Therefore, BEPIF may not always have a sufficient amount of cash to immediately satisfy redemption requests. As a result, your ability to have your shares redeemed by BEPIF may be limited and at times you may not be able to liquidate your investment.
Concentration. The Fund’s investment strategy is substantially concentrated in the real estate sector and its performance will therefore be closely tied to the performance of this sector which has historically experienced substantial price volatility. The Fund’s concentration in the real estate sector may present more risks than if it were broadly diversified over numerous industries and sectors of the economy.
Conflicts of Interest. There may be occasions when the fund manager and its affiliates will encounter potential conflicts of interest in connection with BEPIF’s activities including, without limitation, the allocation of investment opportunities, relationships with Blackstone’s and its affiliates’ investment banking and advisory clients, and the diverse interests of the BEPIF’s investors.
Exchange Currency Risk. BEPIF is denominated in Euro (EUR). Shareholders holding shares with a functional currency other than Euro acknowledge that they are exposed to fluctuations of the Euro foreign exchange rate and/or hedging costs, which may lead to variations on the amount to be distributed. This risk is not considered in the indicator shown above. Fund charges will be incurred in multiple currencies, meaning that payments may increase or decrease as a result of currency exchange fluctuations.
Highly Competitive Market for Investment Opportunities. The activity of identifying, completing and realizing attractive investments is highly competitive, and involves a high degree of uncertainty. There can be no assurance that the Fund will be able to locate, consummate and exit investments that satisfy its objectives or realize upon their values or that the Fund will be able to fully invest its available capital. There is no guarantee that investment opportunities will be allocated to the Fund and/or that the activities of Blackstone’s other funds will not adversely affect the interests of the Fund.
Real Estate Investments. The Fund’s investments do and will consist primarily of real estate investments and real estate-related investments. All real estate investments are subject to some degree of risk. For example, real estate investments are relatively illiquid and, therefore, will tend to limit Blackstone’s ability to vary the Fund’s portfolio promptly in response to changes in economic or other conditions. No assurances can be given that the fair market value of any real estate investments held by the Fund will not decrease in the future or that the Fund will recognize full value for any investment that the Fund is required to sell for liquidity reasons. Deterioration of real estate fundamentals generally may negatively impact the performance of the Fund. In addition, the Fund may be subject to more specific risks relating to inter alia the residential, commercial or the industrial real estate sectors.
Recent Market Events Risk. Local, regional, or global events such as war (e.g., Russia/Ukraine), acts of terrorism, public health issues like pandemics or epidemics (e.g., COVID-19), recessions, or other economic, political and global macro factors and events could lead to a substantial economic downturn or recession in the U.S. and global economies and have a significant impact on BEPIF and its investments. The recovery from such downturns is uncertain and may last for an extended period of time or result in significant volatility, and many of the risks discussed herein associated with an investment in BEPIF may be increased.
Reliance on Key Management Personnel. The success of the Fund will depend, in large part, upon the skill and expertise of certain Blackstone professionals. In the event of the death, disability or departure of any key Blackstone professionals, the business and the performance of the Fund may be therefore adversely affected. Some Blackstone professionals may have other responsibilities, including senior management responsibilities, throughout Blackstone and, therefore, conflicts are expected to arise in the allocation of such personnel’s time (including as a result of such personnel deriving financial benefit from these other activities, including fees and performance-based compensation).
Sustainability Risks. BEPIF may be exposed to an environmental, social or governance event or condition that, if it occurs, could have a material adverse effect, actual or potential, on the value of the investments made by BEPIF. Sustainability risks are assessed into investment decisions relating to BEPIF.
Target Allocations. There can be no assurance that the Fund will achieve its objectives or avoid substantial losses. Allocation strategies and targets depend on a variety of factors, including prevailing market conditions and investment availability. There is no guarantee that such strategies and targets will be achieved and any particular investment may not meet the target criteria.
Use of Leverage. The Fund may borrow money. If returns on such investment exceed the costs of borrowing, investor returns will be enhanced. However, if returns do not exceed the costs of borrowing, Fund performance will be depressed. This includes the potential for the Fund to suffer greater losses than it otherwise would have. The effect of leverage is that any losses will be magnified. The use of leverage also exposes the Fund to the risk of an increase in interest rates.
Opinions expressed reflect Blackstone’s view of the current market environment as of the date appearing in the relevant sections of this website only.
Summary of Investor Rights
Investors’ rights include economical rights such as redemption rights and profit rights, but also rights to a fair information and equal treatment, as well as complaints’ rights and the right to participate in general meetings of shareholders if the investor is registered under her or his own name in the register of shareholders of the Fund. In addition, Directive (EU) 2020/1828 of 25 November 2020 on representative actions for the protection of the collective interests of consumers provides for a collective redress mechanism which applies, in case of infringements by traders of the provisions of, amongst others, Directive 2011/61/EU on Alternative Investment Fund Managers, Regulation (EU) No 1286/2014 on key information documents for packaged retail and insurance-based investment products (PRIIPs), including such provisions as transposed into national law that harm or may harm the collective interests of consumers. Directive (EU) 2020/1828) shall be transposed by Member States, including Luxembourg, by 25 December 2022 at the latest and the provisions shall be applicable from 25 June 2023. Luxembourg has not yet implemented Directive (EU) 2020/1828 but a bill of law is currently pending.
- Monthly subscriptions, redemptions and distributions subject to the terms described in “Summary of Key Terms”. BEPIF declared its first dividend in January 2022.
- Different investor eligibility requirements and minimum subscription amounts may apply in certain jurisdictions.
- The Fund’s investments at any given time may exceed and otherwise vary materially from allocation targets.
- BEPIF will not pay management or performance fees on its investments in Blackstone’s open-ended European Core+ fund for institutional investors.
- Please also refer to the “What Are The Costs?” section of the Key Information Document for a further display on the impact of the costs and charges which investors will pay and how this may impact investment returns which investors may get.
- Represents Blackstone’s current estimate. Please refer to the Prospectus for further details.