NEW YORK & DENVER - Blackstone (NYSE: NYSE:BX) has reached an agreement to purchase Apartment Income REIT Corp. (NYSE: AIRC), commonly known as AIR Communities, for $39.12 per share in an all-cash deal valued at roughly $10 billion, including debt assumption. The acquisition price reflects a 25% premium over AIR Communities' closing stock price on April 5, 2024.
The transaction will transfer ownership of AIR Communities' portfolio of 76 high-quality rental housing communities, predominantly located in coastal markets such as Miami, Los Angeles, Boston, and Washington D.C. Blackstone has committed to investing over $400 million to sustain and enhance these properties and may allocate additional funds for future expansion.
Terry Considine, President & CEO of AIR Communities, expressed confidence that the deal would bolster the company's mission to provide quality homes and services, crediting the AIR team for building a business that will grow under Blackstone's partnership.
Nadeem Meghji, Global Co-Head of Blackstone Real Estate, praised AIR Communities for its exceptional portfolio and operating team, indicating that Blackstone aims to continue providing an excellent resident experience.
The transaction has received unanimous approval from AIR Communities' Board of Directors and is anticipated to close in the third quarter of 2024. It is subject to approval by AIR Communities' stockholders and other customary closing conditions. Following the completion of the deal, AIR Communities' common stock will be delisted from the New York Stock Exchange.
Financial advisors for Blackstone include BofA Securities, Barclays, Goldman Sachs & Co. LLC, and Wells Fargo, with Simpson Thacher & Bartlett LLP serving as legal counsel. Citigroup Global Markets Inc. is advising AIR Communities, with Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel.
The acquisition is based on a press release statement.
InvestingPro Insights
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