Preferred Apartment Communities Inc said on Wednesday a Blackstone Inc unit would buy it in a $5.8 billion deal, as the world’s biggest alternate asset manager ramps up investments in the red-hot U.S. housing sector.
Blackstone Real Estate Income Trust’s (BREIT) all-cash offer of $25 per share is nearly 40% higher than Preferred Apartment’s stock close on Feb. 9, a day before media reports on the company exploring strategic options including a sale.
Blackstone’s offer comes at a time when a strong economic recovery, ultra-low interest rates and continued demand for bigger homes have driven up home prices in the United States. The private equity giant also bought Home Partners of America in a $6 billion deal last year.
Read more: Reuters
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