Blackstone funds are acquiring US student housing communities owner American Campus Communities (ACC) for around $13bn (€11.2bn)
NYSE-listed ACC said Blackstone’s core-plus perpetual capital funds, led by Blackstone Real Estate Income Trust alongside Blackstone Property Partners, are offering to buy the common stock of ACC for $65.47 per fully diluted share in a deal valued at approximately $12.8bn, including the assumption of debt.
The agreed all-cash amount per share represents a 14% premium to ACC’s last closing price.
ACC is the largest owner, manager and developer of high-quality student housing communities in the US. The company’s portfolio comprises 166 owned properties in 71 university markets.
Bill Bayless, American Campus Communities co-founder and CEO, said: “Through our initial public offering, eighteen years ago, we began our pioneering quest to transform the student housing sector into a mainstream, institutional asset class within the commercial real estate sector.”
Bayless said the transaction delivers compelling, immediate, and certain value to shareholders while positioning ACC to further expand its competitive advantage as “we continue in our quest to lead the student housing industry to new heights.
“Blackstone’s expertise, resources and consistent access to capital will allow us to rapidly leverage our platform and core competencies to entrepreneurially grow our core business and to pursue additional innovative opportunities,” Bayless said.
Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate, said: “American Campus Communities has a best-in-class portfolio and platform, built on longstanding relationships with some of the most distinguished and fastest-growing universities in the country.
”Our perpetual capital will enable ACC to invest in its existing assets and create much-needed new housing in university markets.”
The transaction is expected to close in the third quarter of 2022, subject to approval by ACC’s shareholders.
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