Blackstone Group affiliates have entered into an agreement with American Campus Communities to buy the student housing company for $12.8 billion, the companies announced on Tuesday.
In an all-cash deal, vehicles consisting primarily of Blackstone Real Estate Income Trust (BREIT) and Blackstone Property Partners (BPP) will pay $65.47 per fully diluted share, including the assumption of debt.
The acquisition will add a significant footprint to Blackstone’s student housing portfolio. ACC’s holdings comprise 166 properties in 71 markets. Major universities served by its properties include Arizona State University, the University of California at Berkeley, Florida State University, Northeastern University and the University of Texas at Austin. About one-quarter of ACC’s communities are located on campus and the majority are within walking distance.
Blackstone’s recent student housing deals include a joint venture announced in February with Landmark Properties to acquire a four-property, 2,248-bed portfolio. Other major multifamily deals include its $5.8 billion purchase of Preferred Apartment Communities, also announced in February.
In a statement, Jacob Werner, Blackstone’s co-head of North American acquisitions, cited the quality of ACC’s portfolio and its ties with leading universities. Bill Bayless, ACC’s co-founder & CEO, said in a statement that Blackstone’s financial resources and expertise will enable further opportunities for growth and innovation.
Subject to approval by shareholders, the acquisition is expected to close during the third quarter.
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