Proxy Advisory Firms Weigh in on Blackstone REIT’s Deal with American Campus Communities
Two independent proxy advisory firms, Glass, Lewis & Co. and Institutional Shareholder Services Inc., have recommended that shareholders of American Campus Communities Inc. (NYSE: ACC) vote “for” the company's previously announced acquisition by Blackstone Real Estate Income Trust.
Two independent proxy advisory firms, Glass, Lewis & Co. and Institutional Shareholder Services Inc., have recommended that shareholders of American Campus Communities Inc. (NYSE: ACC) vote “for” the company’s previously announced acquisition by Blackstone Real Estate Income Trust Inc., a non-traded real estate investment trust, along with other Blackstone affiliates.
American Campus Communities shareholders will vote for the proposal at an upcoming special meeting scheduled on August 4, 2022 at 10:00 a.m. CT. Stockholders of record as of the close of business on June 14, 2022 are entitled to vote.
In April 2022, Blackstone REIT agreed to purchase all of ACC’s outstanding shares for $65.47 each in an all-cash transaction valued at approximately $13 billion, including the assumption of debt.
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.
The 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.
The transaction is expected to close around August 9, 2022, with shareholder approval.
The buyers include Blackstone Core+ perpetual capital vehicles, primarily comprised of Blackstone REIT, and Blackstone Property Partners.
ACC shares closed at $65.20 on Monday, down $0.05 or 0.08 percent from the previous close.
Blackstone Real Estate Income Trust’s initial offering launched 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 is comprised of $104.4 billion in real estate investments and $10.7 billion in real estate debt.
