Blackstone Inc. BX is acquiring Preferred Apartment Communities Inc. APTS for $5.8 billion in an all-cash transaction.
What Happened: The acquisition values Preferred Apartment at $25 per share. The purchase price represents a premium of approximately 39% over the unaffected closing stock price on Feb. 9, the date before a media report that uncovered the companies were exploring a deal.
Blackstone is coordinating the acquisition through its Blackstone Real Estate Income Trust, and the deal encompasses Preferred Apartment’s portfolio of 44 multifamily communities totaling approximately 12,000 units and 54 grocery-anchored retail properties across the Southeast. Also included are Preferred Apartment’s two office properties and 10 mezzanine/preferred equity investments that have been collateralized by multifamily assets that are either under construction or newly built.
Why It Happened: Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate, said he views the transaction as an affirmation of the financial strength within the Southeast commercial real estate markets.
“Investing using BREIT’s perpetual capital will enable us to be long-term owners of these vibrant communities,” he said. “The company’s grocery anchored retail portfolio performance has also been strong and resilient, and we believe these types of necessity-oriented assets located in areas with growing populations are well-positioned for continued growth.”
Joel T. Murphy, Preferred Apartment’s chairman and CEO, hailed the deal as an “excellent outcome for our stockholders and the culmination of the hard work our first-class team has done over the past few years to simplify and refocus our portfolio.”
Photo: The Anson in Nashville, one of the properties within the Preferred Apartment Communities portfolio.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.
All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.
Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.
Rate collection and criteria: Click here for more information on rate collection and criteria.