Atlanta and New York— Blackstone Real Estate Income Trust Inc. (BREIT) has entered into a definitive agreement to acquire Preferred Apartment Communities Inc. (PAC) for approximately $5.8 billion. Under the terms of the agreement, BREIT will acquire all outstanding common stock of PAC for $25 per share in an all-cash transaction.
PAC’s portfolio includes 44 multi-family communities totaling approximately 12,000 units largely concentrated in Atlanta, Orlando, Tampa, Jacksonville, Charlotte and Nashville, as well as 54 grocery-anchored retail assets comprising approximately 6 million square feet at Atlanta, Orlando, Nashville and Raleigh. BREIT will also acquire PAC’s two Sun Belt office properties and 10 mezzanine/preferred equity investments secured by new or under construction multi-family assets.
“Investing using BREIT’s perpetual capital will allow us to own these vibrant communities for the long term,” said Jacob Werner, co-head of Americas acquisitions for BREIT. “The performance of the company’s grocery-anchored retail portfolio has also been strong and resilient, and we believe these types of need-driven assets located in areas with growing populations are well positioned for growth. keep on going.”
Joel Murphy, President and CEO of PAC, said the transaction is a great outcome for shareholders and the culmination of efforts over the past several years to simplify and refocus PAC’s portfolio.
The purchase price represents an approximately 39% premium to the unaffected closing price of $17.96 per share on Wednesday, February 9, the date before media reports that the company was exploring strategic options such as a sale.
PAC’s board of directors has unanimously approved the transaction, which is expected to close in the second quarter.
Atlanta-based PAC (NYSE:APTS) stock price opened at $25.05 per share on Wednesday, Feb. 16, from $8.21 per share a year ago.
BREIT is managed externally by a subsidiary of Blackstone, based in New York (NYSE: BX). Blackstone’s stock price opened at $124.25 per share today, from $70.34 per share a year ago.