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Blackstone doubles down on real estate with $13B college housing takeover

Blackstone is adding to its large portfolio of real estate assets with an acquisition of one of the nation's largest publicly traded owners of student housing communities, a wager that college campus rents will rise as more students return to in-person classes.

Blackstone on Tuesday inked a $12.8 billion takeover deal for American Campus Communities, agreeing to pay $65.47 per share in cash for the owner, developer and manager of college-living properties. The purchase price represents a 22% premium to the company's 90-day volume-weighted average share price ending April 18.

The deal is the latest in a long line of Blackstone real estate acquisitions. Earlier this month, the firm reportedly landed a $600 million-plus deal for Flatiron Park, a 22-building life science and tech complex in Boulder, Colo.

In September, the investor closed a $10 billion deal for QTS Realty Trust, a provider of data center properties spanning more than 7 million square feet of space in North America and Europe. And last May, the San Diego Union-Tribune reported that Blackstone had agreed to purchase over $1 billion of residential housing from property developer The Conrad Prebys Foundation. The deal comprises 66 multifamily complexes in San Diego with around 5,800 apartment units.

Blackstone saw its real estate business flourish in Q4 2021, with investments climbing 19.2% compared to its private equity investments, which rose 4.8%, according to the firm's last earnings report.

With the latest acquisition, Blackstone will control a portfolio of 166 properties in 71 university markets including the University of California, Berkeley, Arizona State University and Florida State University.

Featured image by Five Stars/Getty Images

This article originally appeared on PitchBook News