Bluerock Residential shares soar 75% after Blackstone agrees to $3.6B deal
Dec. 20, 2021 9:23 AM ETBluerock Residential Growth REIT, Inc. (BRG), BX, BHMBy: Max Gottlich, SA News Editor33 Comments
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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 all outstanding shares of common stock of BRG for $24.25 per share in an all-cash transaction valued at $3.6B.
- Last week, BRG was trading below $16 per share, now changing hands at nearly $27.50. Meanwhile, BX shares slide 2.5%.
- Under the terms of the agreement, Blackstone (BX) will acquire 30 multifamily properties comprising ~11K units, as well as a loan book secured by 24 multifamily assets, the company says.
- Prior to the acquisition, Bluerock (BRG) intends to spin off its single-family rental business to a newly formed real estate investment trust, Bluerock Homes Trust (NYSE:BHM).
- The deal is expected to close in Q2 of 2022.
- Previously, (Sep. 16) Bluerock Residential explored its strategic options.