Blackstone REIT to Purchase Off-Campus Student Housing in JV with Greystar
June 25, 2018 | James Sprow | Blue Vault
The Wall Street Journal reported on June 25 that Blackstone Real Estate Income Trust Inc. would buy some off-campus student housing assets from Education Realty Trust, Inc., a real estate investment trust based in Memphis.
S&P Global reported on June 25 that Blackstone Real Estate Income Trust, Inc. agreed to buy a 10,500-bed portfolio from Education Realty Trust, Inc. in a joint venture with Greystar Real Estate Partners LLC for $1.2 billion. The 95/5 joint venture will be led by the Blackstone Group LP entity, according to the report. The deal will be completed in conjunction with Greystar’s recently announced $4.6 billion purchase of Education Realty. Greystar Real Estate Partners, an apartment management firm based in Charleston, S.C., manages housing units in more than 150 markets around the world. The firm manages over 435,000 conventional units and student beds, according to Monday’s announcement.
According to S&P Global, the joint venture portfolio spans 20 assets and is located adjacent to top-tier universities. The team of Greystar Realty and Education Realty will continue to manage the assets.
Blackstone Real Estate Income Trust, Inc. raised over $600 million in equity in Q1 2018 and has raised over $3.0 billion since inception, breaking escrow on January 1, 2017. The nontraded REIT has been consistently raising over 64% of all equity capital raised in the nontraded REIT sector. As of April 30, 2018, the REIT had over $5.9 billion invested in real properties and over $1.2 billion in investments in real estate related securities. Its estimated net asset value per share for its most popular Class S common shares has increased from $10.35 in Q1 2017 to $10.73 as of May 31, 2018. Distributions on Class S shares, net of fees, were at the rate of 5.00% annualized as of Q1 2018.
Sources: Wall Street Journal; S&P Global; Blue Vault
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