Blackstone Acquires AIR Communities for $10 Billion

By Bobby Samwell • Monday, April 08 10:43 • Permanent Link

Blackstone Real Estate Partners X has announced its acquisition of all outstanding common shares of Apartment Income REIT Corp. (AIR Communities) for $39.12 per share in an all-cash transaction valued at approximately $10 billion, including the assumption of debt. This represents a premium of 25% to AIR Communities' closing share price on the NYSE on April 5, 2024, and a 25% premium to the volume weighted average share price on the NYSE over the previous 30 days.

AIR Communities' portfolio consists of 76 high-quality rental housing communities concentrated primarily in coastal markets, including Miami, Los Angeles, Boston, and Washington D.C. Blackstone plans to invest more than $400 million to maintain and improve the existing communities in the portfolio and may invest additional capital to fund further growth.

The transaction was unanimously approved by the AIR Communities board of directors and is expected to close in the third quarter of 2024, subject to approval by AIR Communities' stockholders and other customary closing conditions. As a condition to the transaction, AIR has suspended payment of its quarterly dividend, effective immediately.

Upon completion of the transaction, AIR Communities' common stock will no longer be listed on the New York Stock Exchange.

Blackstone's financial advisors for the transaction are BofA Securities, Barclays, Goldman Sachs & Co. LLC, and Wells Fargo, with Simpson Thacher & Bartlett LLP serving as Blackstone's legal counsel. Citigroup Global Markets Inc. is acting as AIR Communities' financial advisor, and Skadden, Arps, Slate, Meagher & Flom LLP is serving as AIR Communities' legal counsel.

Apartment Income REIT Corp. (AIR Communities) is a publicly traded, self-administered real estate investment trust with a portfolio comprising 76 communities totaling 27,010 apartment homes located in 10 states and the District of Columbia.

Blackstone is a global leader in real estate investing, with its real estate business founded in 1991 and having $337 billion of investor capital under management. It is the largest owner of commercial real estate globally, with assets across every major geography and sector, including logistics, residential, office, hospitality, and retail.

Today the company's shares have moved 22.5% to a price of $38.41. For more information, read the company's full 8-K submission here.

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