Blackstone Inc. is increasing its investment in student housing as the U.S. emerges from the Covid-19 pandemic, agreeing to buy American Campus Communities Inc. in a cash transaction valued at about $12.8 billion.
The private equity firm will pay $65.47 a share, according to a statement Tuesday, or about 14% above Monday’s closing price.
Private equity firms are investing in college housing as Covid-19 restrictions ease and students return to campus. The firms are wagering that private, off-campus complexes will provide better returns compared with apartments and other residential assets, which have soared in value since the pandemic. The market for student housing will expand to 9.2 million beds by 2031 from 8.5 million in 2020, according to the National Multifamily Housing Council.
Read more: BNN Bloomberg
