Bluerock's Strategic Shift to Enhance Shareholder Value
Bluerock Unveils New Liquidity Strategy for Investors
Bluerock has announced an exciting initiative that aims to offer significant liquidity to its shareholders through its flagship real estate fund, the Bluerock Total Income+ Real Estate Fund. This proposed transformation will transition the Fund from a closed-end interval structure to a publicly traded closed-end fund listed on the New York Stock Exchange. The Board of the Fund has unanimously recommended this strategic move, highlighting its importance for enhancing shareholder value and facilitating more dynamic capital deployment.
Key Benefits of the Proposed Liquidity Event
The primary objective of this proposed conversion is to create full daily liquidity for shareholders. According to Ramin Kamfar, the Founder and CEO of Bluerock, this move reflects a commitment to prioritizing shareholder interests. He emphasized that the new structure would not only provide immediate access to capital but would also empower the Fund to capitalize on favorable buying opportunities within the robust private real estate market.
Ryan MacDonald, Bluerock's Chief Investment Officer, pointed out that transforming the Fund into a publicly traded entity allows for all capital to be actively utilized at a time when real estate valuations are particularly attractive. He anticipates that such a shift will potentially lead to improved total returns and a shift in distribution frequency, moving from quarterly to monthly payouts.
Proposed Timeline and Shareholder Involvement
Certain actions leading to this listing will require approval from shareholders at a special meeting. This meeting is tentatively scheduled for September 3, when shareholders will have the chance to vote on this pivotal transition. Upon successful listing, the Bluerock Total Income+ Real Estate Fund could emerge as the largest publicly listed real estate-focused closed-end fund in the world, setting a new precedent in the market.
Strategic Vision for Future Growth
Jeffrey Schwaber, CEO of Bluerock Capital Markets, expressed confidence in the proposed listing's potential to amplify the Fund's visibility and liquidity in public markets. He noted, "This proposal is intended to broaden TI+'s appeal and accessibility to more retail and institutional investors, enhancing our ability to attract a diverse investor base eager for involvement in high-quality private real estate opportunities."
Encouragement for Shareholder Participation
Bluerock has strongly encouraged shareholders to engage in this process by reviewing proxy materials and casting their votes. This engagement is crucial at this transformative stage for TI+. Ramin reiterated the importance of shareholder trust and the potential for future growth, stating that the new structure would allow for seamless transactions on the NYSE, providing shareholders with the flexibility to navigate their investments without facing redemption delays.
On a related note, for further details regarding the proposed conversion and the voting process, shareholders are directed to visit official communication channels where comprehensive information is available.
About Bluerock
Bluerock stands as a premier institutional alternative asset manager with a strong operational footprint across the U.S. The firm boasts an impressive portfolio managed, exceeding $19 billion, and emphasizes a diverse range of investment options that align with varying investor profiles. The team at Bluerock has a cumulative investment experience of over 100 years, focusing on generating predictable income and capital growth for its clients.
Frequently Asked Questions
What is the proposed change for the Bluerock Total Income+ Fund?
The Fund is transitioning from a closed-end interval structure to a publicly traded closed-end fund listed on the NYSE.
How will this change benefit shareholders?
Shareholders will enjoy daily liquidity and the potential for improved returns, with more frequent monthly distributions.
When will the shareholder meeting occur?
The special shareholder meeting is tentatively scheduled for September 3 to discuss this proposal.
Who is leading the proposal for the Fund's conversion?
The initiative is led by Bluerock's Board and its CEO, Ramin Kamfar, alongside the executive team.
What should shareholders do to participate?
Shareholders are encouraged to review the proxy materials and cast their votes to influence the Fund's future.
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