Blackstone Real Estate is buying Bluerock Residential Growth REIT in a $3.6bn (€3.1bn) deal.

Blackstone will buy all outstanding shares of common stock of Bluerock Residential for $24.25 per share.

The deal involves Blackstone acquiring 30 US multifamily properties comprising approximately 11,000 units as well as a loan book secured by 24 multifamily assets.

Bluerock Residential’s properties consist of garden-style assets and resort-style amenities, built, on average, in 2000. The majority of the properties are located in Atlanta, Phoenix, Orlando, Denver and Austin.

Prior to the acquisition, Bluerock Residential said it intends to spin off its single-family rental business to its shareholders into a newly formed real estate investment trust named Bluerock Homes Trust (BHOM).

BHOM will own interests in approximately 3,400 homes, including 2,000 through preferred/mezzanine investments across the US.

Blackstone’s acquisition, which is currently expected to occur in the second quarter of 2022, is subject to customary closing conditions including the spin-off.

Asim Hamid, senior managing director at Blackstone Real Estate, said: “Bluerock’s portfolio consists of high-quality multifamily properties in markets across the US experiencing some of the strongest fundamentals.

”We look forward to bringing our best-in-class management to these properties to ensure they continue to be operated at the highest standards for the benefit of tenants and the surrounding communities.”

Ramin Kamfar, Bluerock Residential’s chairman and CEO, said: “We believe the substantial premium to our historic trading price is a testament to our success in building a best-in-class institutional-quality multifamily apartment portfolio in our attractive knowledge-economy target markets, along with the robust process run by the board of directors and management to secure maximum value for our shareholders.”

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