Blackstone Backing Up The Money Truck Again With $7.6B Acquisition Of PS Business Parks

Investment giant Blackstone has agreed to buy all outstanding shares of common stock of PS Business Parks for $7.6B, or $187.50 per share, in an all-cash deal.

The common stock price of the Glendale, California-based REIT, which owns about 27M SF of commercial and residential properties, closed on Friday at $167.78 a share. Ownership of PSB’s three outstanding series of preferred stock won't change under the terms of the deal.

PSB's portfolio mostly includes industrial and low-rise suburban office assets in major coastal markets, including California, Florida, Texas and Virginia, though it also has 800 apartment units. The company owns 96 properties altogether with about 4,900 tenants.

The deal is slated to close in the third quarter, pending approval by PSB stockholders. As part of the agreement, PSB has 30 days to actively solicit and consider alternative acquisition bids.

Self-storage specialist Public Storage, which holds about a quarter of the outstanding shares of PSB common stock, has agreed to vote its shares in favor of the deal.

Blackstone has been investing in real estate at a fever pitch. Earlier in April, the New York-based investor agreed to buy student housing operator American Campus Communities for $12.8B.

Also this month, Blackstone closed on a new fund, Blackstone Life Sciences Yield, with $1.6B in investor capital. The fund will invest in commercial-stage bioscience/biotech ventures, complementing Blackstone Life Sciences' overall investment strategy in the life sciences sector.

The investment giant's assets under management ended the first quarter at $915.5B, up from $648.8B a year earlier. As of Q1 2022, Blackstone had $298.2B in real estate assets under management, a larger total than any of its other asset classes.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Why Hines Is Restarting Its Development Engine

Power Availability Becomes New Requirement For Shifting Bay Area Industrial Base

How Integrated Infrastructure Can Help AI Data Centers Deploy Faster, Build Smarter

Nvidia Buys Stake In Data Center Power Company

Invesco Cuts Fees, Adds Incentives To Quell Fund Redemption Requests

Investors Anchor Big Capital Into Marinas, Betting On Shallow Supply

Nike Closes 15 Stores Amid Tumultuous Year

Large Commercial Real Estate Sales Up 30% Despite Economic Headwinds

Evergrande Founder Sentenced To Life, 56 Others Sent To Prison In China

Loud And Clear: Why Aiphone Thinks Intercom Ownership Is Best For Multitenant Buildings

The Fast-Food Exec Taking Her Real Estate Talents To The Looksmaxxing Era

EXCLUSIVE: Industrial Outdoor Storage Investor Continues Buying Spree In Metro Atlanta