Blackstone plans to acquire the REIT through its Blackstone Real Estate Partners X fund, purchasing all outstanding common shares at $39.12 per share. This price represented a 25% premium to AIR’s closing share price on the prior business day when the deal was announced.
Market Reaction and Financial Details
Since the April disclosure, AIR’s stock saw an initial surge of over 23% but has remained relatively stable. As of Wednesday afternoon, shares were trading at $39.08 each. The $10 billion transaction value includes the assumption of debt, while the equity value of the purchase stands at $5.7 billion, as noted in ISS’s report recommending the deal.
AIR Blackstone Deal Closure: About AIR Communities
AIR Communities is a publicly traded, self-administered REIT with a diverse portfolio of 76 communities totaling 27,010 apartments across 10 U.S. states and Washington, D.C. The properties are primarily situated in coastal markets, including Miami, Los Angeles, Boston, and Washington, D.C.
Closing Remarks
The AIR Blackstone deal closure marks a significant shift in the real estate landscape, as Blackstone continues to expand its portfolio with high-value assets. Shareholders and industry analysts will be closely watching as the transaction moves to completion.
