Blackstone To Buy Preferred Apartments In $5.8 Billion Deal
Main Photo: The Ellison, a multifamily housing development owned by Preferred Apartments
Date: February 2022
Name: Preferred Apartment Communities
Location: USA
Number of Keys: 12,000 apartments
Seller: Preferred Apartment Communities
Buyer: Blackstone Real Estate Income Trust
A division of Blackstone is set to acquire multifamily housing owner/operator Preferred Apartment Communities Inc for $5.8 billion.
Blackstone Real Estate Income Trust’s (BREIT) all-cash offer of $25 per share is nearly 40 per cent higher than Preferred Apartment’s stock close on February 9, a day before media reports on the company exploring strategic options including a sale.
Blackstone’s offer comes at a time when a strong economic recovery, ultra-low interest rates and continued demand for bigger homes have driven up home prices in the United States. The private equity giant also bought Home Partners of America in a $6 billion deal last year.
Under the terms of the agreement, BREIT will acquire PAC, which includes 44 high-quality multifamily communities totaling approximately 12,000 units concentrated largely in Atlanta, Orlando, Tampa, Jacksonville, Charlotte and Nashville, and 54 grocery-anchored retail assets comprising approximately six million square feet located mostly in Atlanta, Orlando, Nashville and Raleigh. BREIT will also acquire the Company’s two Sun Belt office properties and 10 mezzanine / preferred equity investments collateralised by under construction and newly-built multifamily assets.
Preferred Apartment Communities is a rental apartment owner that primarily owns and operates multifamily properties, with investments in grocery-anchored shopping centres as well. Preferred Apartment Communities, Inc. is a real estate investment trust engaged primarily in the ownership and operation of Class A multifamily properties, with select investments in grocery anchored shopping centers.
Preferred Apartment Communities’ investment objective is to generate attractive, stable returns for stockholders by investing in income-producing properties and acquiring or originating multifamily real estate loans. As of June 30, 2021, the Company owned or was invested in 117 properties in 13 states, predominantly in the Southeast region of the United States.
BREIT invests in stabilised, income-generating US commercial real estate across key property types including residential, industrial, hotel, retail and office. The terms of the deal include a 30-day “go-shop” period expiring on March 18, during which Preferred Apartment is allowed to seek alternate bids.
The deal is expected to close towards the second quarter of this year.
Price: $5.8 billion
Price per Key: N/A
THPT Comment: Blackstone’s latest investment is into the multifamily accommodation sector. According to a new study, investment in residential alternatives has now topped $ 223 billion, having exceeded all global retail and industrial investment back in in 2017.
First Seen: Serviced Apartment News
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