The Apartment Income REIT Acquisition
Apartment Income REIT Corp.AIRC shares surged after reaching an agreement with Blackstone Inc.BX to go private.
Blackstone Real Estate Partners X finalized a deal to acquire AIR Communities in an all-cash transaction valued at approximately $10 billion, encompassing debt assumptions.
The acquisition price of $39.12 per share offers a 25% premium to Apartment Income Communities’ closing share price on the NYSE on April 5, 2024.
This transaction also represents a 25% premium to the volume-weighted average share price on the NYSE over the preceding 30 days.
AIR Communities’ portfolio includes 76 rental housing communities, predominantly in high-demand coastal markets like Miami, Los Angeles, Boston, and Washington D.C.
Blackstone has committed to investing more than $400 million to enhance and uphold the existing communities in the portfolio.
The deal, unanimously endorsed by the AIR Communities Board of Directors, is slated to conclude in the third quarter of 2024, subject to standard closing parameters.
As part of the agreement, Apartment Income has ceased its quarterly dividend payments, effective immediately.
After the acquisition, AIR Communities’ shares will no longer be listed on the New York Stock Exchange.
By December 31, 2023, Blackstone held $8.4 billion in total cash, cash equivalents, corporate treasury, and other investments, along with $16.9 billion of cash and net investments.
Investors can access exposure to the stock through Tidal ETF Trust Residential REIT ETF HAUS and Invesco S&P Spin-Off ETF CSD.
Current Market Performance: AIRC shares have surged by 22.5% to $38.40 as of the latest check on Monday.
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