Blackstone Real Estate Income Trust Completes Previously Announced Acquisition of $1.2 Billion EDR Student Housing Portfolio in a Joint Venture with Greystar
September 20, 2018 at 16:04 PM EDT
Blackstone Real Estate Income Trust, Inc. (“BREIT”) today completed the previously announced acquisition of the EdR Student Housing Portfolio (the “Portfolio”) for $1.2 billion in a 95%/5% joint venture with Greystar Real Estate Partners (“Greystar”). The transaction was completed in conjunction with Greystar’s previously announced $4.6 billion acquisition of Education Realty Trust (NYSE: EDR), one of the largest owners, developers and managers of collegiate housing in the United States.
The Portfolio includes 10,500 beds across 20 student housing assets adjacent to top-tier universities that have demonstrated strong enrollment growth, such as University of California Berkeley, University of California Riverside, University of Virginia, University of Arizona, Arizona State University, University of Colorado Boulder and Penn State. The Portfolio has consistently maintained occupancy rates over 97% and has achieved 98.5% beginning occupancy with 3.2% annual rate growth for the 2018/2019 academic year. The Greystar / EdR team will continue to manage the assets.
Pro forma for this transaction, BREIT will own an approximately $12 billion portfolio of stabilized, income generating real estate concentrated in U.S. markets with attractive growth as well as real estate debt securities. Citigroup Global Markets Inc. and TSB Capital Advisors acted as financial advisors to BREIT, and Simpson Thacher & Bartlett LLP acted as legal advisor to BREIT.
Blackstone Real Estate Income Trust, Inc. is a perpetual-life, monthly NAV REIT that seeks to invest in stabilized, income-generating U.S. commercial real estate across the key property types, including multifamily, industrial, retail and hotel assets, and to a lesser extent in real estate-related securities. BREIT is externally managed by BX REIT Advisors L.L.C., a subsidiary of Blackstone (NYSE:BX). Further information is available at www.breit.com.
Greystar is a leading, fully integrated multifamily real estate company
offering expertise in investment management, development and property
management of rental housing properties globally. Headquartered in
Charleston, South Carolina with offices throughout the United States, UK
and Continental Europe, Latin America and Asia-Pacific, Greystar
operates in over 150 markets globally and is the largest operator of
apartments in the United States, managing over 480,000 units/beds, with
an aggregate estimated value of over $80 billion. Greystar also has a
robust institutional investment management platform dedicated to
managing capital on behalf of a global network of institutional
investors with approximately $31 billion in gross assets under
management including more than $12 billion of developments that have
been completed or are underway; $9.9 billion in the U.S. and $2 billion
internationally. Following this transaction, Greystar will be the 2nd
largest institutional owner and manager of student housing in the United
States, in addition to Greystar’s global position as the largest student
housing operator in Spain and the 3rd largest owner of student housing
assets in the United Kingdom. Greystar was founded by Bob Faith in 1993
with the intent to become a provider of world class service in the
rental housing real estate business. To learn more about Greystar, visit www.greystar.com.