Blackstone is buying apartment owner Preferred Apartment Communities Inc. in a deal valued at $5.8bn, extending its bet on rental housing across Sun Belt states.
Blackstone will pay for $25 a share in cash for the Atlanta-based real estate investment trust, according to a statement Wednesday. That’s a premium of roughly 39% over the closing price on Feb. 9, the day before Bloomberg News reported the REIT was exploring options including a sale.
The deal includes more than 40 rental apartment properties including 12,000 units in states including Florida, Tennessee and Georgia. Preferred Apartment also owns 54 grocery-anchored shopping centers.
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The company is being acquired by Blackstone’s nontraded REIT, Blackstone Real Estate Income Trust Inc. The deal also includes two office properties, according to the statement.
Blackstone has been ramping up its bet on U.S. rental housing. The firm has agreed to buy two other companies that own apartments in the past two months, building up its presence in states including Colorado, Texas, Arizona and Georgia.
Investor appetite for apartment deals has soared in the past year, pushing prices up for these assets.
Source: BNN Bloomberg
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