Blackstone REIT Completes $13 Billion Acquisition of American Campus Communities
Blackstone Core+ perpetual capital vehicles, primarily comprised of Blackstone Real Estate Income Trust Inc. and Blackstone Property Partners, have completed the previously announced acquisition of all of the outstanding shares of American Campus Communities Inc. (NYSE: ACC).
Blackstone Core+ perpetual capital vehicles, primarily comprised of Blackstone Real Estate Income Trust Inc. and Blackstone Property Partners, have completed the acquisition of all of the outstanding shares of American Campus Communities Inc. (NYSE: ACC), a publicly traded real estate investment trust that owns 166 student housing properties in the United States. The Blackstone funds paid approximately $12.8 billion, including the assumption of debt.
Blackstone REIT, a publicly registered non-traded REIT, and the affiliates paid $65.47 per share in the all-cash transaction. Upon closing, ACC’s common stock will no longer be listed on any public market.
“We are pleased to complete this transaction and welcome the American Campus Communities team to Blackstone. Student housing is a compelling sector with strong historical performance and future growth potential driven by increasing enrollment at the top universities in the U.S. as well as a shortage of quality housing supply. Our perpetual capital will enable ACC to invest in its existing assets and create much-needed new housing in university markets,” said Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate.
Shares of ACC closed at $65.42 on Tuesday.
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.
As of June 30, 2022, American Campus Communities owned 166 student housing properties containing approximately 111,900 beds. Including its owned and third-party managed properties, its total managed portfolio consisted of 204 properties with approximately 143,100 beds.
Blackstone Real Estate Income Trust launched its initial offering in August 2016 and has raised $59 billion in three public offerings as of June 2022. The currently offering has raised $5.6 billion, and as of June 30, 2022, its aggregate NAV was $68.3 billion. The REIT’s portfolio includes $104.4 billion in real estate investments and $10.7 billion in real estate debt.
