BRG Stock: Blackstone Sends Bluerock REIT Soaring With Its Bet on Rental Housing

Bluerock Residential Growth REIT (NYSEAMERICAN:BRG) stock is taking off on Monday thanks to news of a deal with Blackstone (NYSE:BX).

Residential neighborhood subdivision skyline Aerial shot representing BRG and BX stock today.

Source: TDKvisuals /

This deal will have Blackstone acquiring all outstanding shares of BRG stock for a total of $3.6 billion. Blackstone will use cash to fund the deal, which values BRG shares at $24.25 apiece. That’s a roughly 57% premium over the stock’s closing price on Friday.

As part of the agreement, Blackstone will acquire “30 multifamily properties comprising approximately 11,000 units as well as a loan book secured by 24 multifamily assets.” These properties are located in Atlanta, Phoenix, Orlando, Denver, and Austin.

To go along with that, Blackstone is also spinning off its single-family rental business to its shareholders. This will be through the distribution of outstanding shares of the newly formed Bluerock Homes Trust. That will be externally managed by an affiliate of Bluerock Real Estate.

Ramin Kamfar, chairman and CEO of Bluerock Residential Growth REIT, said the following about the deal boosting BRG stock higher today.

“We are very proud to enter into a transaction that delivers tremendous value to our shareholders. We believe the substantial premium to our historic trading price is a testament to our success in building a best-in-class institutional-quality multifamily apartment portfolio in our attractive knowledge-economy target markets, along with the robust process run by the board of directors and management to secure maximum value for our shareholders.”

The acquisition news today has BRG stock experiencing heavy trading. As of this writing, more than 8 million shares of the stock have changed hands. That’s massive jump from its daily avearge trading volume of about 240,000 shares.

BRG stock is up 70.5% as of Monday afternoon.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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