Blackstone to Acquire American Campus Communities in $12.8B Deal
The student housing REIT will use Blackstone’s perpetual capital to invest in its existing assets and create new housing in university markets.
Blackstone has agreed to acquire student housing REIT American Campus Communities in an all-cash transaction valued at $12.8 billion, including debt.
Blackstone Core+ perpetual capital vehicles, primarily comprised of Blackstone Real Estate Income Trust and Blackstone Property Partners, will acquire all outstanding shares of common stock of ACC for $65.47 per share.
The purchase price represents a 14% premium to yesterday’s closing price.
ACC’s portfolio consists of 166 properties in 71 university markets including Arizona State University, The University of Texas at Austin, Florida State University, and the University of California – Berkeley. The majority of ACC’s properties are purpose-built student housing assets located within walking distance of their university campuses, with approximately 24% of ACC’s communities located on campus.
The transaction will position ACC to further expand its footprint, CEO Bill Bayless said in prepared remarks. “Blackstone’s expertise, resources and consistent access to capital will allow us to rapidly leverage our platform and core competencies to entrepreneurially grow our core business and to pursue additional innovative opportunities.”
“Our perpetual capital will enable ACC to invest in its existing assets and create much-needed new housing in university markets,” Jacob Werner, Co-Head of Americas Acquisitions for Blackstone Real Estate said in prepared remarks.
The transaction has been unanimously approved by ACC’s Board of Directors and the independent Special Committee of ACC’s Board and is expected to close in the third quarter of 2022, subject to approval by ACC’s shareholders and other customary closing conditions.
BofA Securities is serving as ACC’s lead financial advisor. KeyBanc Capital Markets Inc. is also acting as a financial advisor. Dentons US LLP is serving as the Company’s legal counsel.
Wells Fargo Securities LLC, J.P. Morgan Securities LLC and TSB Capital Advisors are serving as Blackstone’s financial advisors, and Simpson Thacher & Bartlett LLP is acting as Blackstone’s legal counsel.