Blackstone has closed on two major portfolio deals for a combined $12B, the latest in a long string of mega-mergers for the investment giant.
Its acquisition of the Crown Resorts portfolio, consisting of three casinos and resorts in Melbourne, Sydney and Perth, comprises the bulk of the deal. This is the largest transaction the firm has made in Asia Pacific.
Blackstone has been active over the last few years in the hospitality sector on both sides of the negotiating table, though it said last year it wants to make hospitality a larger percentage of its portfolio. It is selling UK resort business Butlin’s while simultaneously considering a bid for Parkdean Resorts. It teamed up with Starwood to buy Extended Stay Hotels last year.
The firm's REIT, Blackstone Real Estate Income Trust, also completed a deal for Preferred Apartment Communities Inc. It bought PAC at $25 per share of common stock with no interest and overall the deal is valued at $5.8B. This transaction was first announced in February.
In April, BREIT planned to acquire American Campus Communities for $13B, paying $65.47 per share. The firm also bought PS Business Parks for $187.50 per share, or another $7.6B. Both deals are expected to close sometime this year after board approvals.
Beyond its full-company purchases, Blackstone just launched a $25B fund to target inflation-resistant real estate assets. It will be the largest real estate vehicle in history if Blackstone meets its fundraising targets.
Blackstone reported $154.8B of inflows to assets under management in Q4 of 2021 making it one of the firm's best quarters to date, Bisnow previously reported. Real estate makes up almost one-third of the company’s $915.5B in assets under management.
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