(Finance) – Blackstonethe world’s largest manager of alternative assets such as private equity and real estate, and Apartment Income REIT (known as AIR Communities) have entered into a definitive agreement under which Blackstone Real Estate Partners will acquire all of the outstanding common shares of AIR Communities for $39.12 per share in an all-cash transaction valued at approximately 10 billion dollarsincluding the assumption of debt.
The purchase price represents a 25% premium compared to the closing price of AIR Communities shares on the NYSE on April 5, 2024, the last trading day before the transaction was announced, and a 25% premium to the volume-weighted average share price on the NYSE over the last 30 days.
The AIR Communities portfolio consists of 76 high-quality rental housing communities concentrated mainly in the coastal markets including Miami, Los Angeles, Boston and Washington D.C. Blackstone plans to invest more than $400 million to maintain and improve existing communities in the portfolio and may invest additional capital to fund further growth.
“AIR Communities represents the highest quality large-scale apartment portfolio we have ever acquired and is located in markets where multifamily fundamentals are strong – said Nadeem Meghji, Global Co-Head of Blackstone Real Estate – We are very impressed with the extraordinary operations team at AIR Communities and look forward to working closely with them as we continue to offer residents a fantastic experience.”
(Photo: by Samson Creative on Unsplash)