Blackstone REIT Buys AIG’s Affordable Housing Portfolio for $5.1 Billion
Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by private equity giant Blackstone (NYSE: BX), has purchased American International Group Inc.’s (NYSE: AIG) interests in a U.S. affordable housing portfolio.
Blackstone Real Estate Income Trust Inc., a publicly registered non-traded real estate investment trust sponsored by private equity giant Blackstone (NYSE: BX), has purchased American International Group Inc.’s (NYSE: AIG) interests in a U.S. affordable housing portfolio for approximately $5.1 billion, in an all-cash transaction.
All AIG employees who supported the affordable housing portfolio full-time have been offered the option to join the Blackstone-affiliated portfolio company overseeing the assets.
“These communities provide critical affordable housing, and we look forward to being long-term owners,” Kathleen McCarthy, global co-head of Blackstone Real Estate, said when the deal was announced in mid-July. “We will make significant investments to improve the apartments while ensuring they remain affordable and in compliance with all rent regulations.”
In other news, Blackstone REIT recently updated its monthly net asset values for its classes of common stock and reported the $2.1 billion purchase of 20 newly built multifamily properties.
Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised $40.6 billion in three public offerings as of October 2021. The REIT has raised $15.1 billion in the current offering, as of mid-December. As of November 30, 2021, its aggregate NAV was $48.4 billion.
As of November 30, 2021, the REIT’s portfolio included $65.5 billion in real estate investments and $8.5 billion in real estate debt investments.
