At a Glance:
- Blackstone Inc. is buying the American Campus Communities Inc. for $12.8 billion including the debt.
- ACC has 166 properties across 71 university markets which include Arizona State University and the University of Texas at Austin.
- American Campus Communities has stated that it will be taken private through Blackstone Real Estate Income Trust Inc. and Blackstone Property Partners.
Blackstone Inc. is buying the American Campus Communities Inc. for $12.8 billion. This also includes the debt. It was confirmed by the student housing company as the world’s biggest alternative asset manager bets on rents rising after reopening the colleges.
American Campus Communities (ACC) has 166 properties across 71 university markets which include Arizona State University and the University of Texas at Austin.
The all-cash deal has a per-share price of $65.47, which is nearly 14% more than the last stock value closed for ACC. The shares of the Austin, Texas-based Company increased nearly 13% to $64.84 in premarket trading.
ACC and Blackstone’s deal encompasses
Recently, Jonathan Litt’s activist investment firm Land & Buildings has sought out a seat on the ACC’s board. It urges the company to sell its assets and buy back stock. This new deal of $12.8 billion comes months after the investment firm joined the board.
Due to the cheap capital from low-interest rates, the M&A activity in the real estate investment trust (REIT) sector reached a record high in 2021. The low-interest rates might be due to the robust U.S. housing market and an economic recovery from the pandemic.
According to the real estate services provider JLL, the REIT M&A transaction volume has increased to $140 billion from $17 billion in the last year.
American Campus Communities has stated that it will be taken private through Blackstone Real Estate Income Trust Inc. and Blackstone Property Partners. Additionally, Blackstone has also agreed to buy Bluerock Residential Growth REIT in a $3.6 billion deal.
