Blackstone Unit Buys American Campus Communities, A Student Housing Provider, For $12.8B

American Campus Communities Inc. ACC, the Austin-based developer and owner/manager of student housing communities, has been acquired by Blackstone Real Estate Income Trust Inc. (“BREIT”), a non-listed real estate investment trust owned by Blackstone Inc. BX, in a $12.8 billion all cash transaction.

What Happened: ACC’s portfolio encompasses 166 owned properties with 111,900 beds in 71 major university markets including the University of Texas at Austin and the University of California — Berkeley. The company also maintains a managed portfolio consisting of 203 properties with approximately 140,900 beds. Roughly one-quarter of ACC’s properties are based on campus and the majority are within walk distance of their schools.

ACC has been publicly listed since August 2004. As part of the acquisition, BREIT will team with Blackstone Property Partners to acquire all outstanding shares of ACC common stock for $65.47 per fully diluted share. As a condition of the transaction, ACC has agreed to suspend payment of its quarterly dividend, effective immediately, and is not expected to ACC does not expect to host a conference call and webcast to discuss its financial results for the quarter ended March 31, 2022.

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Why It Happened: ACC Co-founder and CEO Bill Bayless welcomed BREIT’s acquisition, stating: “This transaction delivers compelling, immediate, and certain value to our shareholders while positioning ACC to further expand our competitive advantage as we continue in our quest to lead the student housing industry to new heights. Blackstone’s expertise, resources and consistent access to capital will allow us to rapidly leverage our platform and core competencies to entrepreneurially grow our core business and to pursue additional innovative opportunities.”

Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate, added, “American Campus Communities has a best-in-class portfolio and platform, built on longstanding relationships with some of the most distinguished and fastest growing universities in the country. Our perpetual capital will enable ACC to invest in its existing assets and create much-needed new housing in university markets. We’re excited to work with the ACC team to deliver communities where students love living.”

ACC Price Action: American Campus Communities stock is trading higher by 12.7% to $64.89 at press time.

Photo: Tooker House at Arizona State University, an ACC property, courtesy of Bill Timmerman / ACC.