Street View: Blackstone-Apartment REIT deal could spark broader CRE rebound

Apartment Income REIT

09/04/2024 13:00

** Asset manager Blackstone  BX.N  said on Monday it would
take private rental housing firm Apartment Income REIT  AIRC.N ,
known as AIR Communities, for $10 bln in cash, including debt
    ** BX will pay $39.12/shr of the real estate investment
trust, representing a premium of about 25% to its closing price
on Friday
    
    DEAL A POSITIVE FOR THE WIDER MARKET
    ** J.P.Morgan sees the deal as a 'positive' as it indicates
BX now sees value in certain parts of the commercial real
estate(CRE) market 
    ** In terms of other potential bidders for AIRC, JPM says
the likelihood is on the 'low' side
    ** Piper Sandler views the deal as being consistent with
BX's recent commentary - that co believes real estate prices are
bottoming and BX isn't going to wait for an “all clear” to put
capital to work
    ** "We view Blackstone to be in an advantageous position
with patient capital and the ability to move quickly with size
given its substantial real estate dry powder" - Piper
    ** Jefferies says BX is indicating "they view interest rates
as stabilizing and access to capital as improved, acting as a
positive read-through for the sub-sector"
    ** Deal is a 'positive' for apartment REIT valuations -
Jefferies
    ** BTIG sees the deal represents good execution for AIRC in
a challenging market for deals and, at least in the short term,
apartment fundamentals



    

 (Reporting by Siddarth S in Bengaluru)
 ((Siddarth.s@thomsonreuters.com))