By Chris Wack


Preferred Apartment Communities Inc. shares rose 9% to $25.27 after the company said it is being bought by Blackstone Real Estate Income Trust Inc. for $25 a share in an all-cash transaction valued at $5.8 billion.

The stock hit its 52-week high of $25.32 early in the session.

Earlier Wednesday, The Wall Street Journal reported that Blackstone was buying the rental apartment owner in a deal that demonstrates the strong investor demand for multifamily properties in Sunbelt states.

The deal includes 44 high-quality multifamily communities totaling 12,000 units, concentrated largely in Atlanta; Orlando, Tampa and Jacksonville, Fla.; Charlotte, N.C.; and Nashville, Tenn.

It also includes 54 grocery-anchored retail assets comprising 6 million square feet, located mostly in Atlanta; Orlando, Fla.; Nashville, Tenn; and Raleigh, N.C. BREIT would also acquire two Sunbelt office properties and 10 mezzanine/preferred equity investments collateralized by under construction and newly-built multifamily assets.

The purchase price represents a premium of 39% over its Feb. 9 closing price.

The holders of each series of Preferred Apartment Communities' preferred stock would receive the $1,000 a share liquidation preference for each share plus accrued but unpaid dividends. On deal completion, Preferred Apartment Communities' common stock would be delisted from the NYSE and owned by BREIT.

The transaction is expected to close in the second quarter of 2022. The merger agreement also includes a 30-day "go-shop" period that expires March 18.


Write to Chris Wack at chris.wack@wsj.com


(END) Dow Jones Newswires

02-16-22 1058ET