Blackrock Residential Growth REIT Inc. shares soared more than 68% in Monday premarket trading after it announced it would be acquired by Blackstone Real Estate for $24.25 per share. The all-cash transaction is valued at $3.6 billion. Blackstone will get 30 multifamily properties, or 11,000 units, and a loan book secured by 24 multifamily assets in the transaction. The properties are largely located in Atlanta, Phoenix, Orlando, Denver and Austin, and were built, on average, in 2000. The deal is expected to close in the second quarter of 2022. Before the acquisition was announced, Bluerock said it would spinoff its single-family rental business to shareholders through a new REIT called Bluerock Homes Trust, Inc. that will be managed by an affiliate of Bluerock Real Estate. Shareholders will get shares of Bluerock Homes Trust, which have an estimated value of $5.60 per share. Closure of the acquisition will be contingent on the consummation of the spinoff, though it is not contingent on Blackstone financing. Bluerock stock has gained nearly 22% in 2021, while the S&P 500 index (S&P:SPX) is up 23% for the period.
Dec. 20, 2021, 9:26 a.m. EST