Preferred Apartment Communities agrees to go private in $5.8 billion deal

Preferred Apartment Communities Inc. said Wednesday it agreed to be acquired for $25 a share, or about $5.8 billion, in a take-private deal by Blackstone Real Estate Income Trust Inc., a REIT managed by Blackstone Group Inc. . The deal values Atlanta-based Preferred Apartment Communities at a premium of 39% over the unaffected closing stock price on Feb. 9, the date prior to a report that the company was exploring strategic options including a sale. Shares of Preferred Apartment Communities jumped 7.6% in pre-market trades. The deal includes 44 multifamily communities totaling approximately 12,000 units in Atlanta, Orlando, Tampa, Jacksonville, Charlotte and Nashville, and 54 grocery-anchored retail assets located mostly in Atlanta, Orlando, Nashville and Raleigh. BREIT will also acquire the Company’s two Sun Belt office properties and 10 mezzanine/preferred equity investments collateralized by under construction and newly-built multifamily assets. Preferred Apartment Communities CEO said the transaction marks an “excellent outcome for our stockholders.” Jacob Werner, co-head of Americas acquisitions for Blackstone Real Estate, led the deal for the firm. The transaction has been unanimously approved by PAC’s board of directors and is expected to close in the second quarter. Shares of Blackstone Group fell 0.4% in premarket trades.

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