Definitive agreement is reached
Blackstone has entered into a definitive agreement to acquire PS Business Parks (PSB) – a REIT that acquires, develops, owns and operates commercial properties in coastal markets.
Under the terms of the agreement, affiliates of Blackstone Real Estate will purchase all outstanding shares of common stock of PSB for $187.50 per share in an all-cash transaction valued at approximately $7.6 billion, including transaction expenses. Blackstone will also acquire PSB’s 27 million square foot portfolio of industrial, business park, traditional office, and multifamily properties located in California, Miami, Texas, and Northern Virginia.
Commenting on the merger, PSB president and CEO Stephen Wilson said the transaction “is an exceptional outcome for our stockholders and a testament to the incredible company and portfolio of high-quality assets our team has built, acquired and enhanced over the years.”
The deal, unanimously approved by PSB’s board of directors, is expected to close in the third quarter. The merger agreement includes a “go-shop” period that will expire 30 days from May 25, which allows PSB to actively solicit and consider alternative acquisition proposals to acquire PSB. This gives the firm the right to terminate the definitive merger agreement with Blackstone to enter into a superior proposal, subject to the payment of a termination fee and certain other terms and conditions of the agreement.
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“We are excited to add PS Business Parks’ business park, office and industrial assets to our portfolio and look forward to leveraging our expertise to provide the best possible service and experience for PSB’s customers,” said David Levine, co-head of Americas Acquisitions for Blackstone Real Estate.
