Private equity giant Blackstone Group has agreed to acquire Home Partners of America in a deal worth $6bn. The transaction is expected to close in the third quarter of 2021.
Home Partners of America is no stranger to private equity investment, having previously received backing from KKR & Co. and BlackRock. In recent years, Home Partners had explored the option of an initial public offering, but instead opted to sell to Blackstone Real Estate Investment Trust, known as BREIT, a non-public real estate investment trust externally managed by a Blackstone subsidiary.
The deal is a substantial bet on the US property market. In 2020, US home sales grew at their fastest pace in 14 years, when low mortgage rates and the rise of remote work during the pandemic drove market activity. Home Partners owns more than 17,000 houses in the US that it rents out to tenants who are eventually given the opportunity to buy them. Blackstone intends to continue this programme.
Source: Financier Worldwide
By Richard Summerfield
