Home Alts News Blackstone REIT Completes $5.8 Billion Acquisition of Preferred Apartment Communities

Blackstone REIT Completes $5.8 Billion Acquisition of Preferred Apartment Communities

Blackstone Real Estate Income Trust Inc, a publicly registered non-traded REIT managed by private equity giant The Blackstone Group (NYSE: BX), has completed its purchase of Preferred Apartments Communities.

Blackstone Real Estate Income Trust Inc, a publicly registered non-traded REIT managed by private equity giant The Blackstone Group (NYSE: BX), has completed its purchase of Preferred Apartments Communities, Inc. (NYSE: APTS), a publicly traded REIT, for $25.00 per share of common stock, without interest, in an all-cash transaction valued at approximately $5.8 billion. The transaction was announced on February 16, 2022.

The holders of each series of PAC’s preferred stock will receive the $1,000 per share liquidation preference for each share of preferred stock. As a result of the transaction, PAC’s common stock will no longer be listed on the New York Stock Exchange.

“We are pleased to complete this acquisition on behalf of our [Blackstone] REIT investors and welcome the talented PAC team to Blackstone,” said Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate.

Werner explained that, including this transaction, approximately half of Blackstone REIT’s portfolio comprises residential properties largely located in the West and South regions, “which are seeing robust demand and stable occupancy.”

“Preferred Apartments Communities’ portfolio of high-quality multifamily in key SunBelt markets and grocery anchored retail centers is a complementary addition to Blackstone REIT’s portfolio of stabilized, income-generating assets, and we look forward to being long-term owners of these properties,” he added.

Preferred Apartment Communities stockholders voted and approved the transaction at a reconvened special meeting held on June 17th. The meeting was originally scheduled on June 8th.

Preferred Apartment Communities primarily invests in Class A multifamily properties and select grocery anchored shopping centers. As of March 31, 2022, the company owned or was invested in 113 properties in 13 states, predominantly in the Southeast.

Blackstone Real Estate Income Trust’s initial offering launched in August 2016 and has raised $53.9 billion in three public offerings as of March 2022. The currently offering has raised $4.8 billion, and as of May 31, 2022, its aggregate NAV was $67.5 billion. As of May 31, 2022, Blackstone REIT’s portfolio included $97.9 billion in real estate investments and $11.1 billion in real estate debt.

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