The non-public fairness agency Blackstone, the most important proprietor of economic actual property on this planet, is increasing its portfolio of rental housing and industrial actual property in the USA.
The agency introduced on Wednesday that it will spend roughly $6 billion to amass Most well-liked Residence Communities, an actual property funding belief primarily based in Atlanta that owns 44 multifamily communities and about 12,000 housing items within the Southeast, principally in Atlanta; Nashville; Charlotte, N.C.; and the Florida cities of Jacksonville, Orlando and Tampa. Most well-liked additionally owns a number of retail and workplace properties.
Most well-liked’s rental residences accounted for roughly 70 % of the worth of the deal, which is predicted to shut within the second quarter of this 12 months.
The proposed acquisition is the most recent signal of Blackstone’s ambitions in actual property. The agency’s investments in rental housing are a key strategy to offset the strain of inflation, Blackstone’s chairman and chief government, Stephen A. Schwarzman, and its president and chief working officer, Jonathan Grey, stated on an earnings name in late January.
The executives added that rents in the USA had been rising at two to a few instances the speed of inflation. Consumer prices elevated 7.5 % within the 12 months by means of January, the most recent authorities report confirmed, with the price of hire anticipated to rise this 12 months, additional fueling inflation.
Actual property has develop into an more and more essential a part of Blackstone’s efficiency. The agency generated practically half its earnings in 2021 from actual property in what Mr. Schwarzman stated have been “essentially the most exceptional ends in our historical past on nearly each metric.”
Blackstone’s shares have been on a run these days. Its inventory is up roughly 80 % over the previous 12 months.