Blackstone Group LP is reportedly working on a secondary market sale for one of its flagship real estate funds, a move aimed at helping certain investors secure liquidity, according to sources familiar with the matter. The initiative comes as high interest rates have weighed on the fund's performance, prompting a wave of redemption requests from its investors.

The firm has already approached potential buyers about the secondary transaction, which would enable some existing investors in the U.S. fund managed under Blackstone's real estate partners division to cash out their stakes. One individual, who spoke on condition of anonymity to discuss the confidential details, noted that while secondary sales of fund shares are a routine occurrence in the market, this particular instance stands out because Blackstone is taking a more hands-on role by spearheading and coordinating the deal itself.