Blackstone Acquisition Approved by Bluerock Residential Growth REIT Stockholders
Stockholders of Bluerock Residential Growth REIT Inc. (NYSE: BRG), a publicly traded real estate investment trust and sponsor of a non-traded Series T preferred stock offering, have approved the proposed acquisition of the company by affiliates of Blackstone Real Estate.
Stockholders of Bluerock Residential Growth REIT Inc. (NYSE: BRG), a publicly traded real estate investment trust and sponsor of a non-traded Series T preferred stock offering, have approved the proposed acquisition of the company by affiliates of Blackstone Real Estate, according to preliminary voting results.
The acquisition will occur following the spin-off of Bluerock Residential Growth REIT’s single-family rental business through the taxable distribution to common stockholders of all of the outstanding shares of common stock of a newly formed REIT named Bluerock Homes Trust Inc. that will be externally managed by an affiliate of Bluerock Real Estate.
Stockholders will receive $24.25 in cash per share of Bluerock Residential Growth REIT common stock in the acquisition, in addition to the Bluerock Homes Trust common stock that they will receive in the spin-off.
“We are pleased that our stockholders have approved this transaction and thank them for their continued support,” said Ramin Kamfar, chairman and chief executive officer. “[The] stockholder approval marks a key step in completing the transaction and delivering on the tremendous value it offers to our stockholders.”
Under the terms of the agreement, Blackstone agreed to purchase 30 multifamily properties with approximately 11,000 units, as well as a loan book secured by 24 multifamily assets. The properties are mostly located in Atlanta, Phoenix, Orlando, Denver and Austin and consist of “garden-style” assets built, on average, in 2000, the company said when the transaction was announced.
Bluerock Homes Trust will own interests in approximately 3,400 homes, including 2,000 through preferred/mezzanine investments. Shareholders will receive shares of Bluerock Homes Trust, with an implied net asset value estimated at $5.60 for each share of Bluerock Residential Growth REIT common stock they own.
The acquisition and the spin-off currently are expected to close in the second quarter of 2022. Upon closing, Bluerock Residential Growth REIT’s common stock and preferred stock will no longer be listed on any public market.
Bluerock is an alternative asset manager with approximately $13 billion of acquired and managed assets. The company is headquartered in Manhattan with regional offices across the U.S.
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