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Bluerock Residential shares soar 75% after Blackstone agrees to $3.6B deal

House models and one with REIT real estate investment trust.

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  • Shares of Bluerock Residential Growth REIT (NYSE:BRG) surge more than 70% in pre-market trading after the company agrees to be sold to private equity giant Blackstone (NYSE:BX) in a $3.6B deal.
  • Specifically, Blackstone (BX) will buy

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Comments (33)

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jackmergen profile picture
what will happen to brg-c?
2whiteroses profile picture
@jackmergen Both C and D have change of control provisions and I think if they do not elect to call them upon acquisition, C shareholders will have the right to put them back... So given C has been callable since July one might consider the likely circumstance is that an immediate call may be off the table UNTIL the acquistion is completed. There's nothing preventing them from calling now but it's likely the acquisition places a call in limbo until.

Upon the occurrence of a Change of Control/Delisting (as defined below), we may, at our option, redeem the Series C Preferred Stock in whole or in part within 120 days after the first date on which such Change of Control/Delisting occurred, solely in cash at a redemption price of $25.00 per share, plus an amount equal to all accrued but unpaid dividends, if any, to and including the redemption date.
@jackmergen Yesterday (8/31), my broker notified me of a full call of BRG-C scheduled for 10/6. Details were limited in the notice, but I'd imagine the call will be at $25 + accrued interest.

Long BRG-C.
Luca Stein profile picture
Why did it went up today from the bottom? Wanted to buy some
@Luca Stein

Is the market telling us that there might be a second bidder...?

Price is way higher than the BlackRock bid.
2whiteroses profile picture
@jackmaster20 It's Blackstone, not Blackrock... And market price is not above the total anticipated proceeds when you include the spinoff that shareholders receive with an anticipated NAV around 5.60/share
surfgeezer profile picture
LOL, well that's why you limit position sizing.
Had sold both the 10$ Puts and 15$ Calls for Jan, luckily 50% more on the Puts side and only 1/3 of the position goes away that cheap with the Calls. With a 8.44$ cost on those 15.44$ nets, I am still not crying.

I will stick to see what the yield will be on the housing part on the rest of the shares and defer the gain till next year.
Wow! That is some premium, congratulations.

Blackstone picking up their loan book and physical assets in excellent high growth locales. And looks like BRG shareholders still get a spinout in shares of single-family rentals?

Unfortunately, I don't have BRG, but did add a little to BX today.
Averaging down paid off well. Bye and thanks.
Liquidity Swords profile picture
Astounding premium. BRG wins 2021 for REITs hands down.
Sold my entire BRG that I bought last May ($9.50) for $26.50.

Blackrock offering $24.25 all cash. Who might counter offer..????
Who knows...?

I sold for more than 9.25% above BlackRocks offer price.

maybe a second bid materializes, but I took the cash today above
the only known bid for BRG.

I might redeploy into beaten down software/cloud stocks in the
first of January, when they will be finished getting hammered...??
@jackmaster20 maybe some shorties are under pressure.
@jackmaster20 looks like they are spinning off their single family home rental business to current shareholders before the acquisition. I think that is where the premium above Blackrock's offer price for the multifamily business is coming from. Holders get $24.25 cash plus shares in the spinco.
@Charles Leach do you know how many shares in that spin-off BRG shareholders are going to get?
Awesome - this was a steal for a long time. wish I bought more but hey 2,600 shares isn’t to bad of a profit . Great Christmas present haha thanks black rock
@CJoyce316 Blackstone bought it.
@CJoyce316 wondering what your average buy-ing per share was at.
@M11M Cost average was around $9-10. I've got shares around $6 that I bought in early April / Late march of the covid crash, then i was rolling in other dividends from other reits over the last year or so when it pulled back sub 12 a few times i think mayish then early fall, like late aug/sept if i recall right. Generally I was predicting rent raises would solve their debt problems/higher dividends over the next few years since the properties seemed to be pretty nice, then as we saw the investment banks pile into housing, its only logically the apartment reits would benefit at some point. I put like 1/4 of the BRG proceeds into BRT this morning as that stock didnt event move and it's the similar quality apt theme
this deal is much better than ever expected. proves you can buy troubled REITs when you start seeing management begin to align with shareholders. CDR is hopefully next.
@retire47 Agree - troubled REITS (debt) with good assets have proven hope after this deal. I sold CDR likely too early, but ended up buying BRG with some of the proceeds so guess it all worked out. I think I cashed out in the high teens, but my cost was sub $1 pre split. CDR has way to many employees for what like 30 properties... it's crazy

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