Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), has agreed to purchase Resource REIT Inc., a non-traded REIT, in an all-cash transaction valued at $3.7 billion, including the assumption of debt.
Blackstone REIT will purchase all of Resource REIT’s outstanding shares for $14.75 per share. Resource REIT’s portfolio includes 42 multifamily communities totaling more than 12,600 units located in 13 states, including Arizona, Colorado, Florida, Georgia and Texas.
The deal represents a premium of 63 percent to Resource REIT’s most recently published net asset value of $9.06 per share, as of January 28, 2021.
Resource REIT was created following the February 2021 merger of Resource Real Estate Opportunity REIT Inc., Resource Real Estate Opportunity REIT II Inc., and Resource Apartment REIT III Inc., three affiliated non-traded REITs. Shares were priced at $10.00 each.
“We are very pleased to reach this agreement with [Blackstone REIT], as it will provide significant and certain value to our stockholders,” said Alan Feldman, chairman and chief executive officer of Resource REIT. “The transaction’s premium represents the cumulative hard work and dedication of our talented team of professionals, and we are confident that these communities are in good hands with Blackstone.”
The transaction is expected to close in the second quarter of 2022, with the approval of Resource REIT’s stockholders.
Blackstone REIT oversees an investment portfolio includes $83.5 billion in real estate assets and $9 billion of real estate debt, as of December 2021. The REIT’s initial offering launched in August 2016 and has raised $46 billion in three public offerings as of December 2021. The REIT’s current offering has raised $16.9 billion, as of mid-January 2022.