Blackstone (NYSE:BX) saw its shares move into the green Tuesday on news the company has agreed to buy student-housing owner American Campus Communities (NYSE:ACC) for about $12.8 billion including debt. This, according to a story Tuesday in the Wall Street Journal reported.
The deal underscores Blackstone’s bet that rents will continue to rise as colleges open and students return to campus, the report said.
The companies did not immediately respond to Reuters’ requests for comment.
The per-share price of the deal is $65.47, according to the WSJ report. That is nearly 14% higher than the stock’s last close.
ACC will be taken private through Blackstone Real Estate Income Trust and Blackstone Property Partners, the report said.
The purchase price represents a premium of 22% to the 90-calendar day volume-weighted average share price ending April 18, a premium of 30% over the closing stock price of February 16, the date immediately prior to the Company disclosing receipt of an indication of willingness to offer to acquire the Company, and a 14% premium to yesterday’s closing price.
ACC’s portfolio comprises 166 owned properties in 71 leading university markets including Arizona State University, The University of Texas at Austin, Florida State University, and the University of California – Berkeley, among many others.
The majority of ACC’s properties are high-quality, purpose-built student housing assets located within walking distance of their respective university campuses, with approximately 24 percent of ACC’s communities located on campus.
BX shares jumped 86 cents to $112.86, while those for ACC soared $7.33, or 12.7%, to $64.91.
