KKR and Blackstone Real Estate Income Trust, Inc. (“BREIT”)
today announced a definitive agreement for funds managed by KKR to
acquire a portfolio of 19 purpose-built student housing properties
from BREIT for approximately $1.64 billion.
The over 10,000-bed portfolio is comprised of 19 purpose-built,
premium student housing assets anchored to 14 leading four-year
public universities across 10 states. The communities feature a
wide range of best-in-class amenities and the majority are located
with easy pedestrian access to campus. BREIT acquired this
portfolio in 2018 in a joint venture with Greystar Real Estate
Partners, LLC ("Greystar").
“Student housing is a sector that we have long-term conviction
in. We are pleased to be working with Blackstone to complete this
transaction which will add a diverse mix of high-quality properties
to our portfolio,” said Justin Pattner, Partner at KKR and Head of
Real Estate Equity in the Americas. “The operating capabilities we
have built with University Partners over the past decade and our
ability to transact at scale, position us to create value for our
investors and to continue investing in great living experiences
across these communities. We are deploying into what we view as a
compelling market environment to purchase quality real estate.”
Jacob Werner, Co-Head of Americas Acquisitions for Blackstone
Real Estate, said: “This transaction is an excellent outcome for
BREIT’s investors and demonstrates the strong demand for the
high-quality assets in attractive markets that BREIT owns. We
continue to have long-term conviction in student housing and are
actively growing through BREIT’s student housing platform, American
Campus Communities, which is the largest owner of student housing
in the U.S.”
Upon closing of the transaction, the portfolio will be managed
by University Partners, a leading owner and operator of student
housing across the U.S. KKR launched University Partners in 2016
with a team of industry veterans as part of its strategy of
creating vertically-integrated platforms to build scaled exposures
to attractive real estate sectors. Over the past decade, KKR has
acquired institutional-quality properties in top university markets
across the country and expanded University Partners’ business to
include third-party property management. Inclusive of the pending
acquisition, University Partners will own and manage over 25,000
beds, representing nearly $4 billion of property value owned by KKR
and other investors.
“This is a high quality, scaled portfolio of purpose-built
student housing assets serving the country’s leading four-year
public universities,” said Travis Roberts, Chief Executive Officer
of University Partners. “Approximately half of the portfolio is in
markets where we have existing operating experience, and this
transaction will enable us to expand our presence into a number of
attractive new markets. We believe student housing in the top
university markets will continue to benefit from strong enrollment
growth and structural constraints on new supply.”
Blackstone, predominantly through its wholly owned portfolio
company American Campus Communities (ACC), is the largest owner of
student housing in the U.S., with more than 190 properties,
representing approximately 140,000 beds. Since acquiring ACC in
2022, Blackstone has enabled ACC to build more student housing,
including breaking ground on four new student housing communities
since Fall 2023. ACC expects to welcome students to six additional
new ACC communities across the country in 2024.
The transaction is expected to close by the third quarter of
2024, subject to customary closing conditions. KKR is making its
investment in this portfolio primarily from its KKR Real Estate
Partners Americas III fund.
Gibson, Dunn & Crutcher LLP served as legal advisor to
KKR.
TSB Capital Advisors and J.P. Morgan Securities LLC served as
BREIT’s financial advisors. Simpson Thacher & Bartlett LLP
served as BREIT’s legal advisor.
About KKR
KKR is a leading global investment firm that offers alternative
asset management as well as capital markets and insurance
solutions. KKR aims to generate attractive investment returns by
following a patient and disciplined investment approach, employing
world-class people, and supporting growth in its portfolio
companies and communities. KKR sponsors investment funds that
invest in private equity, credit and real assets and has strategic
partners that manage hedge funds. KKR’s insurance subsidiaries
offer retirement, life and reinsurance products under the
management of Global Atlantic Financial Group. References to KKR’s
investments may include the activities of its sponsored funds and
insurance subsidiaries. For additional information about KKR &
Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com.
For additional information about Global Atlantic Financial Group,
please visit Global Atlantic Financial Group’s website at
www.globalatlantic.com.
About Blackstone Real Estate Income Trust, Inc.
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 $339 billion in investor
capital under management. Further information is available at
www.breit.com.
Cautionary Note Regarding Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the federal securities laws and the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements can be identified by the use of forward -looking
terminology such as “outlook,” “indicator,” “believes,” “expects,”
“potential,” “continues,” “identified,” “may,” “will,” “should,”
“seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates”, “confident,” “conviction” or other
similar words or the negatives thereof. These may include financial
estimates and their underlying assumptions, statements about plans,
objectives, intentions, and expectations with respect to
positioning, including the impact of macroeconomic trends and
market forces, future operations, repurchases, acquisitions, future
performance and statements regarding identified but not yet closed
acquisitions. Such forward-looking statements are inherently
uncertain and there are or may be important factors that could
cause actual outcomes or results to differ materially from those
indicated in such statements. These factors include but are not
limited to those described under the section entitled “Risk
Factors” in BREIT’s prospectus and annual report for the most
recent fiscal year, and any such updated factors included in
BREIT’s periodic filings with the SEC, which are accessible on the
SEC’s website at www.sec.gov. These factors should not be construed
as exhaustive and should be read in conjunction with the other
cautionary statements that are included herein (or in BREIT’s
public filings). Except as otherwise required by federal securities
laws, BREIT undertakes no obligation to publicly update or revise
any forward -looking statements, whether as a result of new
information, future developments or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20240424996095/en/
KKR Miles Radcliffe-Trenner 212-750-8300
media@kkr.com
Blackstone Jeffrey Kauth 212-583-5395
jeffrey.kauth@blackstone.com
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