Blackstone’s BREIT to Acquire $1.2 Billion EdR Student Housing Portfolio in a Joint Venture with Greystar
June 25 2018 - 7:00AM
Business Wire
Blackstone Real Estate Income Trust, Inc. (“BREIT”)
announced today an agreement to acquire the EdR Student
Housing Portfolio (the “Portfolio”), with 10,500 beds
across 20 assets, for $1.2
billion, in a 95%/5% BREIT-led joint venture
with Greystar Real Estate Partners (“Greystar”). The
transaction will be completed in conjunction with Greystar’s
previously announced $4.6 billion acquisition of Education Realty
Trust (NYSE: EDR), one of the largest owners, developers and
managers of collegiate housing in the United States with
approximately 45,000 beds serving 47 universities in 26 states.
The Portfolio includes student housing assets adjacent to
top-tier universities that have demonstrated strong enrollment
growth, such as University of California Berkeley, University of
California Riverside, University of Virginia, University of
Arizona, Arizona State University, University of Colorado Boulder
and Penn State. The Portfolio is on average eight years old and has
consistently maintained occupancy rates over
97%. The Greystar / EdR team will continue to
manage the assets.
“The transaction is consistent with BREIT’s strategy of
acquiring high quality, income generating properties that have
attractive long-term growth potential,” said Frank Cohen, Chairman
and CEO at BREIT. “We are thrilled to acquire such a high-quality
portfolio of student housing properties, concentrated in leading
U.S. universities with growing enrollments, and we are thrilled to
build on our long-standing relationship with Greystar.”
Proforma for this transaction, BREIT will own an approximately
$10 billion portfolio of stabilized, income generating real estate
concentrated in U.S. markets with attractive growth as well as real
estate debt securities.
“Greystar is pleased to once again partner with Blackstone to
further expand our footprint in the student housing space,” said
Kevin Kaberna, Executive Director and leader of Greystar’s U.S.
Investment Platform. “We are excited to capitalize on our
significant scale and experience in the sector to enhance the
platform’s performance and value over the long term.”
Following this transaction, Greystar will be the 2nd largest
institutional owner and manager of student housing in the United
States, in addition to Greystar’s global position as the largest
student housing operator in Spain and the 3rd largest owner of
student housing assets in the United Kingdom.
Citigroup Global Markets Inc. and TSB Capital Advisors are
acting as financial advisors to BREIT, and Simpson Thacher &
Bartlett LLP is acting as legal advisor to BREIT.
About BREIT
Blackstone Real Estate Income Trust, Inc. is a perpetual-life,
monthly NAV REIT that seeks to invest in stabilized,
income-generating U.S. commercial real estate across the key
property types, including multifamily, industrial, retail and hotel
assets, and to a lesser extent in real estate-related securities.
BREIT is externally managed by BX REIT Advisors L.L.C., a
subsidiary of Blackstone (NYSE: BX). Further information is
available at www.breit.com
About Greystar
Greystar is a leading, fully integrated real estate company
offering expertise in investment management, development, and
property management of rental housing properties globally.
Headquartered in Charleston, South Carolina, with offices
throughout the United States, Europe, Latin America, and
Asia-Pacific, Greystar is the largest operator of apartments in the
United States, managing more than 435,000 conventional units and
student beds in over 150 markets globally. Greystar also has a
robust institutional investment management platform dedicated to
managing capital on behalf of a global network of institutional
investors with nearly $26 billion in gross assets under management
including more than $9.7 billion of developments underway. With
approximately $6 billion in student housing assets under
management, Greystar is the 10th largest student housing operator
in the United States, the largest student housing operator in
Spain, and the 3rd largest owner of student housing assets in the
United Kingdom with a growing presence across Europe. Greystar was
founded by Bob Faith in 1993 with the intent to become a provider
of world class service in the rental housing real estate business.
To learn more about Greystar, visit www.greystar.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20180625005512/en/
Blackstone:Blackstone Public AffairsPaula Chirhart,
+1-212-583-5011Paula.Chirhart@Blackstone.comorGreystar:Greystar
Public AffairsLiza Kunkel,
+1-843-743-5875Liza.Kunkel@Greystar.com
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