US: 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.
Preferred Apartment Communities is a rental apartment owner that primarily owns and operates multifamily properties, with investments in grocery-anchored shopping centres as well.
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.
