Blackstone Inc. will buy university housing giant American Campus Communities for $12.8 billion in an all-cash transaction, the investment firm announced in mid-April.
The per-share price of the deal is $65.47, nearly 14% higher than American Campus' last stock close prior to the agreement. The deal is expected to go through in the third quarter of 2022 and represents one of the largest purchases for a Central Texas company in history.
The Austin-based real estate company owns, manages, and develops student housing on college campuses nationwide, including properties at the University of Texas, Arizona State University, Florida State University, and the University of California, Berkeley. At the end of 2021, it reported owning 166 properties with about 111,900 beds.
The student housing market currently has 8.5 million beds and is expected to expand to 9.2 million by 2031, according to the National Multifamily Housing Council.
“American Campus Communities has a best-in-class portfolio and platform, built on longstanding relationships with some of the most distinguished and fastest growing universities in the country,” Jacob Werner, Co-head of Americas Acquisitions for Blackstone Real Estate, said in a statement.
The transaction is the New York-based Blackstone Real Estate Income Trust’s largest student housing deal. The $97 billion fund invested in the industry last year through a $784 million joint venture with Landmark Properties.
The purchase will help American Campus grow its core business and pursue new opportunities.
“Through our IPO 18 years ago, we began our pioneering quest to transform the student housing sector into a mainstream, institutional asset class within the commercial real estate sector,” Bill Bayless, American Campus Communities Co-founder and Chief Executive Officer told The Austin American-Statesman. “We have certainly accomplished that mission and are proud and excited to have our best-in-class company join Blackstone, the world’s largest alternative asset manager."