In a deal valued at $36 billion, Blackstone Inc’s acquisition of Bluerock Residential REIT Inc. will extend its push in rental housing in the U.S.
According to a statement on Monday, Blackstone real estate affiliates will buy the Bluerock for $24.25 per share. This price is a premium over the existing shares closing cost on September 15 by 124%. This Bloomberg News reported the firm exploring options to sell, among other strategies.
The share price of Bluerock surged to $27.20 on Friday and finally closed at $15.44.
As per Bloomberg News, Blackstone is acquiring the loan book and rental buildings for 30 multifamily with around 11000 units. The properties are located in Atlanta, Austin, Phoenix, Denver, and Orlando, and they have garden-style apartments of high quality for many of them.
Blackstone Real Estate, Managing Director Asim Hamid said the company’s portfolio consists of multifamily properties of high quality across the U.S. with solid fundamentals. The company wants to benefit the tenants and communities surrounding the properties with high in-class management standards.
Post the pandemic; people have migrated to sunbelt cites in the U.S. With work from home being the new norm and real estate properties cheaper than those in San Francisco and New York., people are relocating to the outskirts. Also, the rising prices have kept potential buyers on hold and instead pushed up rental properties across the U.S. Real Estate investors are shifting from offices, malls, and hotels to housing, resulting in fuelling demand in apartment deals.
The deal of Blackstone with Bluerock is expected to close Quarter 2. Bluerock plans to hive off its single-family rental business to a recently formed Real estate investment Trust (REIT) called the Bluerock Homes Trust Inc before the acquisition deal. The new REIT will have exposure in around 3400 homes in the U.S.
