Blackstone expands student housing stake in $13B deal

Acquisition of American Campus Communities is firm’s biggest in sector

National /
Apr.April 19, 2022 10:23 AM

From left: Nadeem Meghji, head of real estate for the Americas, Blackstone; Bill Bayless, CEO, American Campus Communities (Blackstone, American Campus Communities, iStock)

Blackstone’s yearly report card will feature a larger stake in student housing after the firm’s biggest move in the sector yet.

The company has agreed to buy American Campus Communities in a deal that values the student housing provider at $12.8 billion, including debt, the Wall Street Journal reported. The Austin-based company is the largest publicly traded student housing owner and developer in the United States.

Blackstone is paying $65.47 per share to buy the company, a 14 percent premium from Monday’s closing price, the Journal reported. The firm plans on taking ACC private through its Blackstone REIT and Blackstone Property Partners.

ACC owns 166 student housing buildings in the United States, including some on or near large campuses like Arizona State University and Cal-Berkeley. Approximately 25 percent of the properties are situated directly on a campus.

Blackstone plans on building more properties under the ACC banner to meet the demand for student housing across the country.

The sector showed resilience in the wake of the pandemic, which didn’t hurt rent collections as much as expected. As more students return to campus and student housing construction remains limited, the Journal reported the sector appears set for increased growth.

“We think student housing is a compelling sector because it’s performed through cycles and has been really quite resilient over time,” Nadeem Meghji, Blackstone’s head of real estate for the Americas, said.

Shares of ACC ended last year at an all-time high of $57 and have managed to largely maintain that level ever since, despite company net income falling by more than half last year to $36 million.

While this is Blackstone’s biggest acquisition in the student housing sector, it’s not the company’s first foray into the market. Blackstone Real Estate Income Trust in August announced a $784 million joint venture with student housing developer Landmark properties to acquire and recapitalize an eight-property, 5,400-bed student housing portfolio.

[WSJ] — Holden Walter-Warner





    Related Articles

    arrow_forward_ios
    World Class Holdings’ Nate Paul (World Class, iStock)
    Court approves $95M sale of Nate Paul’s downtown Austin site
    Court approves $95M sale of Nate Paul’s downtown Austin site
    Gaia's Danny Fishman with Easton Park, Peppermill Place and Coventry Square (Gaia)
    Gaia sale marks Texas exit
    Gaia sale marks Texas exit
    Bob Mohr and Rodrigo Godoi with DoubleTree by Hilton Austin (Mohr Capital)
    Mohr enters hotel market with Austin purchase
    Mohr enters hotel market with Austin purchase
    Daryl Fairweather (iStock)
    Austin rent rise tops nation
    Austin rent rise tops nation
    Tides’ Sean Kia & Ryan Andrade with the Chelsea on Southern at 5838 Southern Boulevard in Far North Dallas (Tides Equities)
    Tides nabs Texas apartments for $50M
    Tides nabs Texas apartments for $50M
    Cordish's David Cordish with One Rangers Way (Cordish, iStock)
    Texas Rangers to build apartments in $4B entertainment district
    Texas Rangers to build apartments in $4B entertainment district
    Gautam Goyal; Green Tree Place and Pine Lake Village, Houston (Three Pillars, iStock)
    Three Pillars pulls in $56M on Texas multifamily sale
    Three Pillars pulls in $56M on Texas multifamily sale
    Austin airport expansion renderings (ABIA)
    Austin’s airport mess on the mend
    Austin’s airport mess on the mend
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...