Bluerock's Innovative Approach to Shareholder Liquidity

Transforming Bluerock Total Income+ Real Estate Fund

Bluerock has announced an exciting proposed liquidity event for its flagship real estate fund, the Bluerock Total Income+ Real Estate Fund. This proposed initiative seeks to convert TI+ from a closed-end interval fund to a publicly traded closed-end fund on the New York Stock Exchange. The decision, backed unanimously by the Fund's Board, is designed to enhance liquidity and offer long-term growth potential for its investors.

Executive Insights Behind the Proposal

Ramin Kamfar, the Founder and CEO of Bluerock, shared that this proposal emerged from thoughtful discussion and direct engagement with their investors. He emphasized that this move reflects their dedication to serving shareholders' best interests. According to him, shifting to a listed structure is a strategic choice intended to unlock long-lasting value in TI+. The Bluerock executive team and the Fund's Board are confident that this is a pivotal step for the Fund and their investors’ enduring success.

Enhancing Liquidity and Capital Deployment

The planned conversion will facilitate full daily liquidity for investors while providing more flexible capital deployment. This strategic agility positions the Fund favorably to take advantage of lucrative buying opportunities in today’s private real estate market. Ryan MacDonald, Bluerock's Chief Investment Officer, explained that by accessing public markets, the Fund would be better equipped to leverage its capital during times when real estate valuations are particularly attractive. This could lead to increased total returns and more frequent distributions, transitioning from a quarterly to a monthly payment schedule.

Anticipated Shareholder Approval and Future Impact

Critical to the proposal’s realization is shareholder approval, which is expected to be solicited at a special meeting currently anticipated for later this year. Upon listing, the TI+ Fund would potentially emerge as the largest real estate-focused closed-end fund publicly traded worldwide.

Accessing a Broader Investor Base

Jeffrey Schwaber, CEO of Bluerock Capital Markets, mentioned the significant advantages TI+ would gain in the public sphere, including greater visibility and enhanced liquidity. Listing the Fund stands to broaden the investor spectrum, allowing participation from a wider array of retail and institutional investors. Schwaber believes that TI+ presents unique access to a meticulously curated portfolio of high-growth private real estate investments alongside some of industry’s leading institutional players. He envisions that this shift marks an important evolution in the Fund’s structure, paving a more successful path for their investors.

Encouragement for Shareholder Participation

Bluerock has urged its shareholders to thoroughly review proposed proxy materials and actively cast their votes, emphasizing the importance of this momentous decision. Schwaber expressed the significance of shareholder engagement in shaping the Fund’s future direction.

Understanding Structural Evolution of TI+

Kamfar reiterated that this conversion signifies a significant structural advancement for TI+. Post-conversion, shareholders will have the ability to trade shares on the NYSE without facing complex redemption queues or proration issues. This shift is expected to support the likelihood of higher returns and increased distribution frequency, igniting excitement for the Fund's new chapter and nurturing the trust investors have in Bluerock.

Further Information and Resources

For details about the proposed conversion and voting process, shareholders are encouraged to refer to the provided proxy materials. Additionally, for access to TI+ public company filings, shareholders may visit the U.S. Securities and Exchange Commission's website or Bluerock's company website for comprehensive information.

Frequently Asked Questions

What is the proposed liquidity event for Bluerock Total Income+?

The proposed liquidity event aims to convert the fund from a closed-end interval structure to a publicly traded entity, enhancing liquidity and accessibility.

What will change for shareholders after the proposed conversion?

Following the conversion, shareholders will have full daily liquidity and the ability to trade shares without queues or proration issues.

Why is this conversion important for the Fund?

This conversion could enhance total returns and distribution frequency for shareholders, marking a transformative step in the Fund's strategy.

How will this impact capital deployment?

The conversion will enable more agile capital deployment, allowing the Fund to capitalize on attractive investment opportunities in real estate.

How can shareholders participate in the decision-making process?

Shareholders are encouraged to review proxy materials closely and cast their votes to influence the Fund's pace and direction.

About The Author

Olivia Taylor here, a 26-year-old writer and financial advisor. After earning a degree in finance, I worked in the sector for years. I've always loved numbers and had a talent for simplifying difficult financial ideas so that anyone could understand. I wrote my first book because of this passion; it helps readers take charge of their financial futures by fusing real-life stories with useful financial advice.

Whether they are just beginning their careers, preparing for significant life events, or seeking to invest wisely, my goal with my writing is to enable people to make educated financial decisions. The foundation of my work is the conviction that security and freedom of the individual are largely determined by financial literacy. To further financial education, I run workshops and frequently write for financial blogs in addition to my books.

I like to travel, experience other cultures, and find inspiration in daily life when I'm not writing or examining market trends. My passion is utilizing sound financial practices to help people reach their financial objectives and lead the best lives possible.

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