Blackstone to take Apartment Income REIT private in US$10b deal
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The news: Asset manager Blackstone has announced it will take rental housing firm Apartment Income REIT, known as AIR Communities, private in a USD10 billion ($15.15 billion) deal.
The numbers: The asset manager will acquire all outstanding common shares of AIR Communities for USD39.12 per share in an all-cash transaction. The purchase price represents a premium of 25% to AIR Communities’ closing share price on the NYSE on April 5, 2024, and a 25% premium to the volume weighted average share price on the NYSE over the previous 30 days.
The context: Blackstone is a leading real estate investor, and has been increasing its focus on the rental housing market as the supply of US apartments is expected to fall due to a slowdown in construction.
AIR Communities’ portfolio comprises 76 high-quality rental housing communities primarily in western and eastern US coastal markets, and Blackstone says it will invest over USD400 million to maintain and improve the existing communities. It may also inject additional capital for further growth.
What they said: Nadeem Meghji, global co-head of Blackstone Real Estate said: “AIR Communities represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong. We are very impressed by the terrific operating team at AIR Communities and look forward to working closely with them, while continuing to deliver a fantastic resident experience.”
The source: Blackstone press release
