Blackstone’s $7.6B Deal Moves Forward

Picture by Adrian Sulyok via

Stockholders of PS Small business Parks Inc. have voted in acceptance of the REIT’s acquisition by affiliate marketers of Blackstone. The $7.6 billion deal was 1st announced back again in April, with Blackstone established to execute an all-hard cash deal for PSB’s 27 million-sq.-foot portfolio of industrial, office and multifamily homes. The transaction is expected to finalize on or about July 20.

The properties comprising PSB’s portfolio are located in California, Texas, Florida and Northern Virginia. According to CommercialEdge, the REIT owns far more than 6.6 million square toes of office environment space and more than 20.6 million sq. feet of industrial assets. The list of huge houses features Hayward Company Park in Hayward, Calif., at much more than 1 million sq. ft, as perfectly as Port America Industrial Park in Dallas, at 717,735 square toes.

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PSB selected J.P. Morgan Securities as lead monetary advisor, Eastdil Secured is performing as actual estate advisor, when Wachtell, Rosen & Katz is offering legal advisory solutions.

Blackstone will fork out $187.50 per share of PSB prevalent inventory, symbolizing a 15 % high quality in excess of the quantity weighted typical share price more than the 60 days prior to the initial announcement in April. The PSB board also introduced a prorated quarterly dollars dividend on frequent stock, as nicely as a closing income dividend of $5.25. The prorated and closing dollars dividends are contingent on the transaction finalizing on the July 20 date.

A great period for REITs

Blackstone has entered an agreement to acquire PS Business Parks’ 27 million-square-foot industrial portfolio, including Port America in Dallas.
Port America. Graphic courtesy of PS Enterprise Parks Inc.

The REIT General public Storage has a sizeable expense in PSB, keeping a approximately 41 % common equity desire by way of 7.2 million popular shares and 7.3 million constrained partnership models. According to an announcement posted in April, Public Storage is established to acquire $2.7 billion of dollars proceeds and understand a $2.3 billion tax gain on sale. Community Storage intends to distribute $2.3 billion in gains to its shareholders.

In an job interview with Nareit, Blackstone REIT Chairman & CEO Frank Cohen pointed out that mounting curiosity prices have led to an investing tactic that seeks out belongings in which revenue can grow more quickly than inflation. In accordance to Cohen, the REIT will by no means focus on a single sector inside industrial authentic estate.

As one particular of the most outstanding business serious estate companies in the U.S., Blackstone has been hectic these days, with several large investments throughout sectors. Last yr it announced the acquisition of WPT Industrial REIT for $3.2 billion, as well as the $10 billion acquisition of facts centre REIT QTS Realty Believe in. Earlier this calendar year, it agreed to pay out $12.8 billion for scholar housing organization American Campus Communities, and also declared a $3.7 billion deal for all of Resource REIT’s remarkable shares of widespread inventory.

Jerrie Parise

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