Blackstone in $10bn take private of US resi REIT

Blackstone has agreed a deal to take Apartment Income REIT private in a circa $10bn (£7.9bn) deal. Blackstone Real Estate Partners X has agreed to buy all the outstanding shares of the business, known as AIR Communities, for $39.12 per share, valuing it at $10bn, including debt. The purchase price represents a premium of 25% to AIR Communities’ closing share price on the NYSE on 5 April and to the volume weighted average share price on the NYSE over the previous 30 days. AIR Communities’ portfolio consists of 76 rental housing communities concentrated primarily in coastal markets including Miami, Los Angeles, Boston and Washington DC, comprising more than 27,000 homes. Blackstone said it planned to invest more than $400m to maintain and improve the existing assets in the portfolio and may invest additional capital to fund further growth. 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.” The deal is expected to close in the third quarter of 2024. BofA Securities, Barclays, Goldman Sachs and Wells Fargo are acting as Blackstone’s financial advisers on the deal; Citigroup Global Markets is advising AIR Communities.