South Africa’s Texton, linked to Robert Franco, completes $6.2 million Blackstone REIT exit to strengthen its balance sheet.
Texton Property Investments UK, a subsidiary of JSE-listed Texton and linked to South African property investor Robert Franco, has completed the sale of its remaining shares in Blackstone Real Estate Income Trust (BREIT) through the iCapital Offshore Access Fund, realizing more than $6 million.
The R110.76 million ($6.27 million) sale, finalized on August 31, 2025, closes out Texton’s investment in the Access Fund after a partial redemption in July 2024.
Over the holding period, the investment delivered a 30.37 percent total return, supported by steady distributions and the rand’s weakness against the dollar.
Texton first bought into BREIT during its 2022 financial year to diversify offshore and capture hard-currency earnings.
BREIT, managed by Blackstone, invests in income-producing U.S. commercial real estate and related debt.
The Access Fund structure gave Texton both monthly income and flexibility to exit, which the company used as conditions shifted. Management said the decision reflected a mix of realized returns, currency benefits, and portfolio rotation.
“The redemption proceeds will be reinvested in line with group strategy and to strengthen the balance sheet,” the board said in a filing.
Texton originally acquired the shares for about R98.37 million ($5.53 million). Redeeming them for R110.76 million ($6.22 million) plus income highlights a clear rand-based gain, made larger by the exchange rate.
The exit comes at a time when global property valuations are under closer scrutiny and liquidity in unlisted REITs is tightening.
While Blackstone’s BREIT has held up better than peers, offshore investors like Texton are adjusting positions as markets settle.
Robert Franco remains closely tied to Texton through his investment vehicle Kloof Capital.
He is a non-executive director and shareholder, holding 45 percent of Oak Tech Trading, a major Texton investor, and a direct 16.03 percent stake in the company.
Texton has also paid fees to Kloof-linked entities in the past for underwriting, consulting, and rental services.
The BREIT sale, classified as a Category 2 transaction under JSE rules, did not need shareholder approval but included related-party disclosures.
With $6.27 million now released, attention turns to how Texton will use the funds, whether for debt reduction, new acquisitions, or capital management.
For Franco, the move reflects his use of offshore channels to realize gains while keeping Texton balanced between its South African base and overseas opportunities.