Blackstone to take Apartment Income REIT private in $10bn deal

Asset manager Blackstone known as AIR Communities, for $10 billion in cash, including debt, in what analysts see as a bet on easing pressure within the commercial real estate market.

Under the deal, Blackstone will pay $39.12 for each share of the real estate investment trust, representing a premium of about 25% to its closing price on Friday. Shares of the REIT jumped about 23%.
Get the week’s top news delivered directly to your inbox – Sign up for our newsletter
Sign up
Elevated interest rates have put pressure on landlords with loans on rental housing and other commercial real estate properties. Monday’s deal was seen by some analysts as a vote of confidence that this pressure has begun easing.
“With this transaction, we believe Blackstone is messaging they view interest rates as stabilizing and access to capital as improved, acting as a positive read-through for the sub-sector,” Jefferies analysts wrote.
A top real estate investor, Blackstone has been sharpening its focus on rental housing, betting on its revival as the supply of apartments in the U.S. is expected to decline due to a slowdown in construction.

Source:Reuters

Can’t stop reading? Read more