Bluerock Private Real Estate Fund (BPRE) listed in December 2025 at $14.70 per share, a steep discount to its estimated net asset value of $24.36. Roula Khalaf, Editor of the Financial Times, noted the fund's conversion from an interval fund aimed to allow investor exits without asset fire sales. Despite expectations that the discount would close over several quarters as buying demand converged with asset values, the gap has widened significantly.

Investors now ascribe BPRE a value nearly half of its internal valuation. This persistent discount has drawn activist interest, with Saba Capital, led by Boaz Weinstein, accumulating over 7.3 million shares, representing 5.12% of the company. Saba recently filed a demand to inspect shareholder lists ahead of the 2027 annual meeting to solicit proxies.

The amended 13-F filing revealed Saba paid $107.8 million for the stake, now valued at approximately $87.4 million, highlighting a painful mark-to-market loss. The situation underscores the risks of listing private real estate funds, where public market pricing often diverges from optimistic underlying asset marks.