Blackstone Takes Bluerock REIT Private In $3.6B Deal

Blackstone Inc BX has agreed to buy Bluerock Residential Growth REIT Inc BRG in a deal valued at $3.6 billion, extending its push into U.S. rental housing.

• Affiliates of Blackstone Real Estate will acquire Bluerock for $24.25 a share. Bluerock closed at $15.44 on Friday.
• Blackstone is buying 30 multifamily rental buildings with about 11,000 units and a loan book secured by 24 rental assets. 
• According to the statement, most properties are high-quality garden-style apartments located in cities including Atlanta, Phoenix, Orlando, Denver, and Austin.
• "Bluerock's portfolio consists of high-quality multifamily properties in markets across the U.S. experiencing some of the strongest fundamentals," Asim Hamid, senior managing director at Blackstone Real Estate, said. "We look forward to bringing our best-in-class management to these properties to ensure they continue to be operated at the highest standards for the benefit of tenants and the surrounding communities."
• Blackstone's deal is expected to close in the second quarter. 
• Before the acquisition, Bluerock plans to spin off its single-family rental business to a newly formed real estate investment trust, Bluerock Homes Trust Inc. 
• The new REIT will own interests in about 3,400 homes across the U.S.
•  Price Action: BRG shares are up 74.9% at $27.00 during the premarket session on the last check Monday.