Blackstone’s latest global real estate fund is acquiring listed US real estate investment trust (REIT) AIR Communities in a $10bn (€9.2bn) take-private deal.
Blackstone Real Estate Partners X has agreed to pay $39.12 for each of the rental housing communities owner’s shares, a price that represents at 25% premium to the NYSE-listed firm’s stock’s last closing price.
The price values AIR Communities at around $10bn, including the assumption of debt and Blackstone intends to delist AIR Communities from the New York Stock Exchange once the acquisition is completed in the third quarter of 2024.
Blackstone said it expects to invest more than $400m to maintain and improve the existing communities in the portfolio and may invest additional capital to fund further growth.
AIR Communities holds a portfolio of 76 rental housing communities located mainly in coastal markets including Miami, Los Angeles, Boston and Washington DC.
Terry Considine, president and CEO of AIR Communities, said: “The transaction will strengthen the AIR mission to provide homes for others, be a great place to work, act as responsible stewards of AIR communities and be a trusted partner to AIR investors.
“The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely. The AIR team is grateful to Blackstone for the opportunity and for its faith in what can be accomplished working together.”
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.”
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