Blackstone Real Estate Income Trust to Acquire Home Partners of America
June 22 2021 - 8:00AM
Business Wire
Blackstone Real Estate Income Trust, Inc. (“BREIT”) announced
today that it has entered into a definitive agreement to acquire
Home Partners of America (“HPA”), valuing the company at $6.0
billion. HPA’s unique, resident-led business model expands housing
access and choice, while providing a clear path to homeownership to
individuals and families across the United States. BREIT’s
investment in HPA will be supported by its perpetual capital,
enabling a truly long-term approach to the management of the
properties. Furthermore, Blackstone’s substantial experience with
rental residential properties and commitment to acting responsibly
to support residents will bring valuable perspective and
best-in-class operating standards to the ownership and maintenance
of these homes.
HPA has a high-quality portfolio of over 17,000 homes across the
United States. Its strong and experienced management team is
committed to responsible ownership and seeks to provide potential
residents flexibility, choice and control when deciding where and
how to live. By purchasing homes on behalf of residents, HPA has
helped thousands of home seekers live in a home they otherwise are
not yet ready to purchase, under terms that best fit their needs.
Furthermore, HPA’s program is built on transparency and can provide
more optionality while lowering risk for residents as compared to a
typical home purchase.
BREIT will support the HPA management team as it explores
opportunities to expand access to high-quality housing for lower
income households, including by formally launching its Choice
Lease® program. Choice Lease is intended to provide a direct and
tangible opportunity to help address housing affordability
challenges for families across the U.S. Additionally, BREIT is
committed to continuing and expanding the financial planning
assistance program offered to all residents, free of charge.
Jacob Werner, Blackstone Real Estate Senior Managing Director,
said, “The fundamental premise of the HPA platform is to provide
residents with the opportunity to live in their chosen home with
the option to purchase it—we intend to build on that goal and
expand access to homes across the U.S. We look forward to working
with HPA’s leadership team to further invest in the properties and
continue its role as a valuable resource for people considering
home purchases.”
Bill Young, Co-Founder and CEO of HPA, said, “This partnership
with Blackstone Real Estate and its consistent support of our
business will ensure we are well-positioned to expand the reach of
our program to provide access to more homes while also delivering
on our commitments to our current residents for the long-term. Our
goal has always been to make homeownership a reality for more
people, and now we can continue that mission, while providing even
more flexibility and services for our residents.”
The transaction is expected to close in the third quarter of
2021, subject to customary closing conditions and approvals.
Goldman Sachs & Co. LLC acted as financial advisor and
Sidley Austin LLP and Fried, Frank, Harris, Shriver & Jacobson
LLP acted as legal counsel to HPA. BofA Securities and Wells Fargo
Securities acted as financial advisors to BREIT and Simpson
Thatcher & Bartlett LLP acted as its legal counsel.
About Blackstone Real Estate Income
Trust
Blackstone Real Estate Income Trust, Inc. (BREIT) is a
perpetual-life, institutional quality real estate investment
platform that brings private real estate to income focused
investors. BREIT invests primarily in stabilized, income-generating
U.S. commercial real estate across key property types and to a
lesser extent in real estate debt investments. BREIT is externally
managed by a subsidiary of Blackstone (NYSE: BX), a global leader
in real estate investing. Blackstone’s real estate business was
founded in 1991 and has approximately $196 billion in investor
capital under management. Further information is available at
www.breit.com.
About Home Partners of
America
Chicago-based Home Partners of America, Inc. purchases, owns and
operates high-quality single-family rental homes, dedicated to
making living in a single-family home accessible for more people.
Through their innovative Lease Purchase Program, Home Partners has
provided access to single family housing for thousands of
households all across the country. Home Partners is a dynamic
leader in today's single-family housing market helping home
seekers, sellers, and agents meet their various housing needs.
Further information is available at
https://www.homepartners.com/.
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version on businesswire.com: https://www.businesswire.com/news/home/20210622005666/en/
Blackstone Jeffrey Kauth jeffrey.kauth@blackstone.com +1
212-583-5395
HPA Madeline Sweeney madeline@sccadv.com +1 630-706-1068
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