Blackstone to take Apartment Income REIT private in $10 bln deal

Asset manager Blackstone said on Monday it would take private rental housing firm Apartment Income REIT, known as AIR Communities, for $10 billion in cash, including debt.

Under the deal, Blackstone will pay $39.12 for each share of the real estate investment trust, representing a premium of about 25% to its closing price on Friday. Shares of the REIT jumped 23.64% in premarket trading.

"AIR Communities represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong," said Nadeem Meghji, Global Co-Head of Blackstone Real Estate.


One of the top investors in real estate, Blackstone has been sharpening its focus on rental housing, betting on its revival as supply of apartments in the U.S. were set to decline amid a slowdown in construction, which could push up rental rates.

Blackstone also plans to invest another $400 million to improve the REIT's 76 rental housing communities, which are located in primarily coastal markets, the company said.

Blackstone, whose real estate portfolio is valued at $586 billion, had in January agreed to take Canadian single-family rental housing firm Tricon Residential.