Blackstone and Apartment Income REIT announced today that they have entered into a definitive agreement under which Blackstone Real Estate Partners X will buy all outstanding common shares of AIR Communities for $39.12 per share in an all-cash transaction valued at about $10 billion, including the assumption of debt.
AIR Communities’ portfolio includes 76 high-quality rental housing communities concentrated primarily in coastal markets, including Miami, Los Angeles, Boston, and Washington D.C. Blackstone plans to invest over $400 million to maintain and improve the existing communities in the portfolio and may invest additional capital to fund further growth.
This purchase price represents a premium of 25% to AIR Communities’ closing share price on the NYSE on April 5, 2024, which is the last trading day before the announcement of the transaction, and a 25% premium to the volume weighted average share price on the NYSE over the previous 30 days.
This deal was unanimously approved by the AIR Communities Board of Directors and is expected to close in the third quarter of 2024, subject to approval by AIR Communities’ stockholders and other closing conditions. AIR has suspended payment of its quarterly dividend (effective immediately) and the AIR Communities’ common stock will no longer be listed on the New York Stock Exchange.
BofA Securities, Barclays, Goldman Sachs, and Wells Fargo are Blackstone’s financial advisors, and Simpson Thacher & Bartlett is its legal counsel. Citigroup Global Markets is AIR Communities’ financial advisor, and Skadden, Arps, Slate, Meagher & Flom is its legal counsel.
KEY QUOTES:
“I am proud of the AIR team and its remarkable culture. The transaction will strengthen the AIR mission to provide homes for others, be a great place to work, act as responsible stewards of AIR communities, and be a trusted partner to AIR investors. The business the AIR team has built will be improved and expanded by collaboration with Blackstone and a shared focus on serving residents and investing wisely. The AIR team is grateful to Blackstone for the opportunity and for its faith in what can be accomplished working together.”
– Terry Considine, President & CEO of AIR Communities
“AIR Communities represents the highest quality, large scale apartment portfolio we have ever acquired, and is located in markets where multifamily fundamentals are strong. We are very impressed by the terrific operating team at AIR Communities and look forward to working closely with them, while continuing to deliver a fantastic resident experience.”
– Nadeem Meghji, Global Co-Head of Blackstone Real Estate
