Bluerock Residential Growth REIT Inc. (NYSE: BRG), a publicly traded real estate investment trust, expects to complete its proposed acquisition by Blackstone Real Estate, as well as its single-family rental business spin-off, around October 6, 2022, the company said in a statement.
In December 2021, Bluerock Residential Growth REIT agreed to sell all outstanding shares to affiliates of Blackstone Real Estate for $24.25 per share in an all-cash transaction valued at $3.6 billion. Bluerock Residential Growth REIT shareholders approved the proposal in April.
Under the terms of the agreement, Blackstone will purchase 30 multifamily properties with approximately 11,000 units, as well as a loan book secured by 24 multifamily assets. The properties are mostly located in Atlanta, Phoenix, Orlando, Denver and Austin and consist of “garden-style” assets built, on average, in 2000.
Prior to the acquisition, Bluerock Residential Growth REIT intends to spin off its single-family rental business into a newly formed REIT named Bluerock Homes Trust Inc. that will be externally managed by an affiliate of Bluerock Real Estate.
Bluerock Homes Trust will own interests in approximately 3,400 homes, including 2,000 through preferred/mezzanine investments. Shareholders will receive shares of Bluerock Homes Trust, with an implied net asset value estimated at $5.60 for each share of Bluerock Residential Growth REIT common stock they own.
The completion of the acquisition is subject to the consummation of the spin-off, and upon closing, Bluerock Residential Growth REIT’s common stock and preferred stock will no longer be listed on any public market.
Shares of Bluerock Residential Growth REIT closed at $25.36 on Friday, and jumped 4.1 percent after hours to $26.40 per share.
Bluerock is an alternative asset manager with approximately $14 billion of acquired and managed assets. The company is headquartered in Manhattan with regional offices across the U.S.