Blackstone Inc has consented to acquire Bluerock Residential Growth REIT Inc for $3.6 billion, strengthening its rental housing push in the United States.
Bluerock will be purchased for $24.25 per share by Blackstone Real Estate affiliates. On Friday, Bluerock closed at $15.44.
Blackstone is purchasing 30 multifamily rental buildings totaling around 11,000 units, as well as a loan book guaranteed by 24 rental properties.
The majority of the properties, according to the statement, are high-end garden-style apartments in locations such as Atlanta, Phoenix, Orlando, Denver, and Austin.
Asim Hamid, senior managing director at Blackstone Real Estate, stated that Bluerock’s portfolio consists of high-quality multifamily buildings in markets across the United States experiencing some of the best fundamentals. He further stated that Blackstone is excited to bring its best-in-class management to these buildings to guarantee that they are maintained to the highest standards for the benefit of tenants and the surrounding community.
The deal with Blackstone is scheduled to be completed in the second quarter.
Bluerock intends to spin off its single-family rental business to a newly formed real estate investment trust, Bluerock Homes Trust Inc., before the acquisition. The new Bluerock REIT will own around 3,400 residences across the United States.
BRG shares were up 74.9 percent to $27.00 during the pre-market session on Monday, according to the last update.