Bloomberg's Hui-Yong Yu looks at Blackstone Group's efforts at raising a $5 billion fund dedicated to real estate investments for its first nontraded REIT.

Blackstone Real Estate Income Trust will focus on commercial real estate, particularly apartments and hotels, according to a regulatory filing this week.

The nontraded REIT is Blackstone’s latest push into less-risky real estate investments. The company already has an open-end fund for institutions, called Blackstone Property Partners. That fund buys so-called core-plus real estateproperties that might require light renovation or leasing work to increase values. The core-plus strategy, which includes separately managed accounts for institutional clients, has grown to about $12 billion in assets, Blackstone Chairman and Chief Executive Officer Stephen Schwarzman said in April.

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