Blackstone’s REIT Buying Binge Continues as It Agrees to a $3.7 Billion Apartment REIT Deal
January 25, 2022 | Matthew DiLallo | Nasdaq.com
Blackstone Group (NYSE: BX) is at it again. The private-equity giant is buying another real estate investment trust (REIT). This time, it’s paying $3.7 billion to acquire Resource REIT, a non-traded REIT focused on owning apartment buildings.
Here’s a closer look at Blackstone’s latest headline-grabbing deal and what’s driving its shopping spree.
Pricey apartments
Blackstone Real Estate Investment Trust (BREIT), a non-traded REIT managed by Blackstone, is acquiring fellow non-traded REIT Resource REIT. It owns 42 garden-style apartment communities with more than 12,600 units featuring lots of green space and amenities. The REIT has apartments across 13 states, including some of the strongest, fastest-growing markets, like Arizona, Colorado, Florida, Georgia, and Texas.
BREIT is paying $14.75 per share for Resource REIT. The all-cash transaction values Resource REIT at $3.7 billion, including the assumption of its debt. This price represents an enormous 63% premium to Resource REIT’s most recently published net asset value (NAV) of $9.06 per share.
