All-cash transaction involves 30 multifamily properties
Blackstone has closed its acquisition of Bluerock Residential Growth REIT in an all-cash transaction valued at $3.6 billion.
Blackstone first announced the deal last December, revealing that Bluerock had agreed to sell all outstanding shares of its common stock for $24.25. Bluerock has also finalized the spin-off of its single-family rental business into an externally managed real estate investment trust, Bluerock Homes Trust (BHM). The REIT has started trading on the New York Stock Exchange American.
As part of the agreement, Blackstone will acquire 30 multifamily properties comprising approximately 11,000 units and a loan book secured by 24 multifamily assets. Most of the properties are in Atlanta, Phoenix, Orlando, Denver and Austin.
Asim Hamid, senior managing director at Blackstone Real Estate, commented: “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.”
“We are very proud to enter into a transaction that delivers tremendous value to our shareholders,” said Ramin Kamfar, chairman and CEO of Bluerock. “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.”