Major deal sees it privatize rental housing portfolio
Blackstone Real Estate has completed its acquisition of Apartment Income REIT Corp. (AIR Communities) in a $10 billion deal that would take the publicly traded real estate investment trust private.
Blackstone acquired all outstanding common shares of AIR Communities for $39.12 per share in an all-cash transaction valued at roughly $10 billion.
The acquisition price reflects a 25% premium over AIR Communities’ share price as of April 5, and a similar premium over the 30-day average share price before the announcement.
AIR Communities, a publicly traded real estate investment trust (REIT), owns 76 rental housing communities in major coastal markets, including Miami, Los Angeles, Boston, and Washington D.C.
Blackstone intends to invest more than $400 million to maintain and improve these communities, with the potential for further capital to support growth.
“The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely,” Terry Considine, president and CEO of AIR Communities, said in a media release.
Blackstone, a global leader in real estate investing, manages $337 billion in investor capital and is the largest owner of commercial real estate globally. The firm’s diverse portfolio includes logistics, residential, office, hospitality, and retail assets. Blackstone’s real estate strategy focuses on acquiring under-managed assets and investing in stabilized real estate through various institutional and individual investor strategies.
Nadeem Meghji, global co-head of Blackstone Real Estate, expressed confidence in the acquisition: “AIR Communities represents the highest quality, large-scale apartment portfolio we have ever acquired and is located in markets where multifamily fundamentals are strong. We are very impressed by the terrific operating team at AIR Communities and look forward to working closely with them while continuing to deliver a fantastic resident experience,” he said.
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Financial advisors for Blackstone included BofA Securities, Barclays, Goldman Sachs & Co. LLC, and Wells Fargo, with legal counsel provided by Simpson Thacher & Bartlett LLP. Citigroup Global Markets Inc. served as financial advisor for AIR Communities, with Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel.
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