Bluerock Total Income+ Real Estate Fund Secures $750 Million Line of Credit with JPMorgan, RBC Capital Markets
NEW YORK, Oct. 24, 2024 /PRNewswire/ -- Bluerock Total Income+ Real Estate Fund ("TI+" or "the Fund", ticker: TIPRX) announced today that it has closed on a $750 million revolving line of credit with JPMorgan Chase Bank ("JPMorgan") and RBC Capital Markets ("RBC"). JPMorgan is serving as lead lender for the new credit facility.
TI+, the largest real estate interval fund in the world with approximately $4.6 billion in assets under management1, will primarily utilize the line of credit to enhance the Fund's balance sheet and support treasury operations at an accretively lower cost of capital versus its previous non-bank credit facility. The Fund's previous line of credit was retired as part of this transaction.
"The Fund's $750 million credit facility with JPMorgan and RBC at a competitive interest rate will translate to lower operating costs, and in turn, stronger net performance for our shareholders," said Ramin Kamfar, founder and CEO of Bluerock, the Fund's sponsor.
Jeffrey Schwaber, CEO of Bluerock Capital Markets, the dedicated dealer manager for Bluerock, added, "This transaction is a testament to the strength of TI+ and Bluerock, with two leading global banking institutions committing to finance a substantial line of credit at highly attractive terms that will benefit TI+ investors."
Bluerock, a leading alternative asset manager with more than $18.7 billion in acquired and managed assets1 across a suite of real estate and credit products, has been a pioneer in delivering alternatives solutions to individuals for over 22 years. TI+, one of the firm's flagship investment solutions, offers individual investors access to institutional private real estate alongside some of the world's largest institutional investors with an industry-leading track record dating back to 2012.
The procurement of the Fund's new credit facility takes place during a period of significant growth for Bluerock. The firm recently acquired a strategic stake in The Townsend Group ("Townsend") as part of a partnership that will open the door to new product development opportunities and leverage Bluerock's robust distribution platform to deliver Townsend's investment capabilities to the private wealth channel.
ACRE Solutions, LLC and Eastdil Secured served as advisors to Bluerock on the transaction.
About Bluerock Total Income+ Real Estate Fund
The Bluerock Total Income+ Real Estate Fund offers individual investors access to a portfolio of institutional real estate managed by top-ranked fund managers. The Fund seeks to serve as a comprehensive real estate holding and is designed to provide a combination of current income, capital preservation, long-term capital appreciation and enhanced portfolio diversification with low to moderate volatility and low correlation to the broader equity and fixed income markets. The Fund utilizes an exclusive partnership with Mercer Investment Management, Inc., the world's leading advisor to endowments, pension funds, sovereign wealth funds and family offices globally, with over 16,000 clients worldwide, and over $16.45 trillion in assets under advisement.
About Bluerock
Bluerock is a leading institutional alternative asset manager based in New York with regional offices across the U.S. Bluerock principals have a collective 100+ years of investing experience with more than $120 billion real estate and capital markets experience and manage multiple well-recognized real estate private and public company platforms. Bluerock has more than $18.7 billion in acquired and managed assets and offers a complementary suite of public and private investment programs, with both short and long-term goals, to individual investors seeking solutions aimed at providing predictable income, capital growth, and tax benefits.
An investment in any share class of the Fund represents an investment in the same assets of the Fund. However, the purchase restrictions and ongoing fees and expenses for each share class are different – See "Summary of Fund Expenses" – located in the Fund's prospectus. If an investor has hired an intermediary and is eligible to invest in more than one class of shares, the intermediary may help determine which share class is appropriate for that investor. When selecting a share class, you should consider which Share classes are available to you, how much you intend to invest, how long you expect to own shares, and the total costs and expenses associated with a particular share class. You should speak with your financial advisor to help you decide which share class is best for you.
The ability of the Fund to achieve its investment objective depends, in part, on the ability of the Advisor to allocate effectively the Fund's assets across the various asset classes in which it invests and to select investments in each such asset class. There can be no assurance that the actual allocations will be effective in achieving the Fund's investment objective or delivering positive returns.
Liquidity provided through quarterly repurchase offers for no less than 5% of the Fund's shares at net asset value. There is no guarantee that an investor will be able to sell all shares in the repurchase offer. An investment in the Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the shares and should be viewed as a long-term investment. Before making your investment decision, you should (i) consider the suitability of this investment with respect to your investment objectives and personal financial situation and (ii) consider factors such as your personal net worth, income, age, risk tolerance and liquidity needs. The organizations referenced above are not associated with or invested in Bluerock or the Bluerock Total Income+ Real Estate Fund. The list includes a sampling of organizations that held investments in at least two of the underlying portfolio holdings as of the date published. A complete list is available upon request. These organization's investment holdings are subject to change at any time.
An investment in shares represents an indirect investment in the securities owned by the Fund. The value of these securities, like other market investments, may move up or down, sometimes rapidly and unpredictably. The Fund is "non-diversified" under the Investment Company Act of 1940 and therefore may invest more than 5% of its total assets in the securities of one or more issuers. As such, changes in the financial condition or market value of a single issuer may cause a greater fluctuation in the Fund's net asset value than in a "diversified" fund. The Fund is not intended to be a complete investment program.
The Fund is subject to the risk that geopolitical and other similar events will disrupt the economy on a national or global level. For instance, war, terrorism, market manipulation, government defaults, government shutdowns, political changes or diplomatic developments, public health emergencies (such as the spread of infectious diseases, pandemics and epidemics) and natural/environmental disasters can all negatively impact the securities markets.
The Fund will concentrate its investments in real estate industry securities. The value of the Fund's shares will be affected by factors affecting the value of real estate and the earnings of companies engaged in the real estate industry. These factors include, among others: (i) changes in general economic and market conditions; (ii)changes in the value of real estate properties; (iii) risks related to local economic conditions, overbuilding and increased competition; (iv) increases in property taxes and operating expenses; (v) changes in zoning laws; (vi)casualty and condemnation losses; (vii) variations in rental income, neighborhood values or the appeal of property to tenants; (viii) the availability of financing; (ix) climate change; and (x) changes in interest rates. Many real estate companies utilize leverage, which increases investment risk and could adversely affect a company's operations and market value in periods of rising interest rates. The value of securities of companies in the real estate industry may go through cycles of relative under-performance and over-performance in comparison to equity securities markets in general.
A significant portion of the Fund's underlying investments are in private real estate investment funds managed by institutional investment managers ("Institutional Investment Funds"). Investments in Institutional Investment Funds pose specific risks, including: such investments require the Fund to bear a pro rata share of the vehicles' expenses, including management and performance fees; the Advisor and Sub-Advisor will have no control over investment decisions may by such vehicle; such vehicle may utilize financial leverage; such investments have limited liquidity; the valuation of such investment as of a specific date may vary from the actual sale price that may be obtained if such investment were sold to a third party.
Additional risks related to an investment in the Fund are set forth in the "Risk Factors" section of the prospectus, which include, but are not limited to the following: convertible securities risk; correlation risk; credit risk; fixed income risk; leverage risk; risk of competition between underlying funds; and preferred securities risk.
Investors should carefully consider the investment objectives, risks, charges and expenses of the Bluerock Total Income+ Real Estate Fund. This and other important information about the Fund is contained in the prospectus, which can be obtained online at bluerockfunds.com. The prospectus should be read carefully before investing.
The Bluerock Total Income+ Real Estate Fund is distributed by ALPS Distributors, Inc (ALPS). Bluerock Fund Advisor, LLC is not affiliated with ALPS.
1As of September 30, 2024.
SOURCE Bluerock Total Income+ Real Estate Fund
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