Blackstone Real Estate Income Trust Inc., a non-traded real estate investment trust, along with other Blackstone affiliates, has agreed to purchase all outstanding shares of American Campus Communities Inc. (NYSE: ACC) for $65.47 per share in an all-cash transaction valued at approximately $12.8 billion, including the assumption of debt.
The buyers include Blackstone Core+ perpetual capital vehicles, primarily comprised of Blackstone REIT, and Blackstone Property Partners.
American Campus Communities is a publicly traded REIT that owns 166 student housing properties with approximately 111,900 beds. The purchase price represents a premium of 22 percent to the company’s 90-calendar day volume-weighted average share price ending April 18, 2022. Shares closed at $64.80 on Tuesday, an increase of 12.6 percent from the previous close of $57.55.
American Campus Communities’ portfolio is located in 71 university markets including Arizona State University, The University of Texas at Austin, Florida State University, and the University of California – Berkeley, among others. The majority are purpose-built student housing properties located within walking distance of their respective university campuses, with approximately 24 percent located on campus.
“American Campus Communities has a best-in-class portfolio and platform, built on longstanding relationships with some of the most distinguished and fastest growing universities in the country,” said Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate.
The transaction is expected to close in the third quarter of 2022, with the approval of American Campus Communities shareholders.
This is the latest multi-billion-dollar transaction involving Blackstone REIT in recent months. The fund has purchased, or agreed to purchase, a number of non-traded and publicly traded REITs including Preferred Apartment Communities (NYSE: APTS), Resource REIT Inc., WPT Industrial Real Estate Investment Trust (TSX: WIR.U), and American International Group’s (NYSE: AIG) U.S. affordable housing portfolio.
Blackstone REIT’s initial offering launched in August 2016 and has raised $51.5 billion in three public offerings as of February 2022. As of February 28, 2022, it’s portfolio included $85.3 billion in real estate investments and $9.3 billion in investments in real estate debt.