Broadstone Real Estate Access Fund Announces Liquidation Distribution
NEW YORK–(COMMERCIAL THREAD) – Broadstone Real Estate Access Fund (âBDREXâ or the âFundâ), a closed-end fund, registered under the Investment Company Act of 1940, announced a liquidation distribution of $ 4.3024 per share for classes I and W. This represents a distribution of $ 20.7 million or 67% of the net asset value of the Fund as at August 24, 2021. The distribution is payable on August 25, 2021 to shareholders of record on August 23, 20211. BDREX is managed by Benefit Street Partners, LLC (âBSPâ).
As previously announced on March 4, 2021, the Board of Trustees of the Fund has approved a plan for liquidation and dissolution of the Fund and return of capital to investors of the Fund. The Fund made a prior liquidation distribution on April 22, 2021. BDREX is closed to new investors and shares of the Fund are no longer available for purchase, including shares purchased under the Fund’s automatic investment plan. .
ALPS Fund Services, Inc. and ALPS Distributors, Inc. serve as the administrator and distributor of the Fund, respectively. DST Systems, Inc., the parent company of the Distributor, acts as Transfer Agent for the Fund. UMB Bank, NA serves as the custodian of the Fund.
An interval fund, such as BDREX, is a closed-end investment company that periodically offers to buy back its shares from shareholders. The number of shares BDREX will offer to repurchase will be determined by its board of directors on a quarterly basis. Redemptions within 90 days of purchase may be subject to fees. There is no guarantee that an investor will be able to sell all of the shares they wish to sell as part of a buyback offer.
The shares of the Fund will not be listed on a stock exchange and a secondary market is not expected to develop. An investment is not suitable for investors who need cash. Investing in BDREX involves risks, including loss of capital and other risks set out in the âRisk Factorsâ section of the prospectus.
Since BDREX’s direct real estate investments will be relatively illiquid, the Fund may not be able to vary its portfolio in response to changes in economic and other conditions, which could result in losses to the Fund. The bankruptcy, insolvency or financial deterioration of any of the tenants of the Fund’s direct real estate investments could significantly delay the ability to collect unpaid rents or force the Fund to find new tenants. With respect to BDREX’s investments in private real estate investment funds, the Fund may not have exclusive decision-making authority over such funds and may be unable to take steps to protect its interests in such investments. The Fund may be subject to additional risks if it fails to meet a call for capital from a private real estate investment fund and the underlying fund may pursue investment strategies that compete with each other or not. do not correspond to those of the Fund. BDREX’s investments in securities of listed REITs will be subject to risks directly affecting such REITs.
BDREX is distributed by ALPS Distributors, Inc. (ALPS). ALPS is not affiliated with BDREX, Benefit Street Partners LLC or UMB Bank, NA.
1Part of the distribution that the Fund has made is a return of the money shareholders initially invested and represents a return of capital to shareholders for tax purposes, which will have the effect of increasing its gain (or reducing loss) on a subsequent sale of shares. A shareholder must have an investment in the Fund on the distribution record date of August 23, 2021 in order to receive the distribution.