Shareholders of Resource REIT Inc., a publicly registered non-traded real estate investment trust, have approved the $3.7 billion proposed merger with affiliates of Blackstone Real Estate Income Trust, a publicly registered non-traded REIT sponsored by private equity giant The Blackstone Group (NYSE: BX), according to a filing with the Securities and Exchange Commission.
At a special meeting held earlier this week, 89.5 million shares voted in favor of the merger proposal, nearly 1.3 million voted against, and 2.1 million abstained.
In an all-cash transaction valued at $3.7 billion, Blackstone REIT agreed to 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.
The transaction is expected to close in the second quarter of 2022.
This is the latest multi-billion-dollar transaction involving Blackstone REIT in recent months. The fund has purchased, or agreed to purchase, a number of non-traded and publicly traded REITs including American Campus Communities Inc. (NYSE: ACC), Preferred Apartment Communities (NYSE: APTS), WPT Industrial Real Estate Investment Trust (TSX: WIR.U), and American International Group’s (NYSE: AIG) U.S. affordable housing portfolio.
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 $3.4 billion, and as of April 30, 2022, its aggregate NAV was $66.3 billion.