Blackstone agrees to buy American Campus Communities in $ 13B deal

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Update 8:10 am: Adds deal confirmation from ACC.

Blackstone (NYSE: BX) agreed to buy student-housing owner American Campus Communities (NYSE: ACC) for about $ 12.8 billion, including debt. ACC jumped 13% in premarket trading.

Blackstone agreed to pay $ 65.47 / share for ACC, a 14% premium to Monday’s close, according to a statement. As a condition to the transaction, ACC agreed to suspend payment of its quarterly dividend, effective immediately. The deal is expected to close in Q3.

The news comes after activist investor Land & Buildings last week withdrew its nominee for the board of American Campus Communities (ACC). The disclosure came as activist Jonathan Litt’s Land & Buildings has been agitating for changes at the REIT that owns student housing for more than a year.

“Based upon the feedback we’re hearing from the market, we have renewed faith that the company is addressing the most important topics we have raised; namely, improving operations, enhancing capital allocations and being open to maximizing value through a sale if the right opportunity presents itself, “Litt wrote in a letter to the board on April 11.

ACC is the largest publicly trader owner and developer of student housing in the US ACC’s portfolio comprises 166 owned properties in 71 university markets including Arizona State University, The University of Texas at Austin, Florida State University, and the University of California – Berkeley.

BofA Securities is serving as ACC’s lead financial advisor. KeyBanc Capital Markets Inc. is also acting as a financial advisor. Dentons US LLP is serving as the company’s legal counsel. Wells Fargo, JP Morgan and TSB Capital Advisors are serving as Blackstone’s financial advisors, and Simpson Thacher & Bartlett LLP is acting as Blackstone’s legal counsel.

For Blackstone the deal comes after Blackstone (BX) Real Estate Income Trust and Landmark Properties, a student housing developer, owner and operator, formed a $ 784M joint venture to refinance and acquire eight student housing assets in August.

The story was previously reported by the WSJ.

In 2020, Blackstone agreed to buy iQ Student Accommodation in the US for about $ 6 billion.

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