High Quality Multi-family REITs - EQR, CPT, ESS, AVB

[Gregmal]

Lol but they’re insolvent because dumbasses bought private reit shares at stupid prices and are now mad they can’t sell them like free trading stock!

[thepupil]

this one is out of blackstone's $30B fund BREP X which closed in 2023. 

 

I think the lower premium / price reflects the fact that this one is being bought by higher cost of capital institutional PE fund rather than the retail BREIT fee machine. 

 

While the 20% premium isn't some giant payday, it shows that public MF REITs clear private "opportunistic" hurdles (at least in this case, it clears BREP X's). 

 

this looks like a $6 billion equity check which seems pretty big for a $30B fund. Perhaps this will be done in conjunction w/ co-investment from say a SWF or they'll rapidly decrease the equity consideration with sales of some portion of the portfolio (a la the classic Equity Office Properties txn).....actually they'll probably put a bit more debt on it than AIRC has on it now so that's another way to decrease the equity check lol. 

 

https://www.wealthmanagement.com/investment-strategies/blackstone-raises-more-30-billion-giant-real-estate-fund

Edited April 8 by thepupil

[Gregmal]

Hmmm, so all those governance issues at Aimco? Think this bodes very well for AIV.