The American investment company Blackstone Inc. has entered into an agreement to sell a portfolio of student housing projects to KKR & Co. for $1.64 billion. This is reported in a press release from Blackstone.
As part of the deal, the Blackstone Real Estate Income Trust (BREIT) will transfer 19 student housing facilities located next to 14 public universities to funds managed by KKR and acquired in 2018 through a joint venture with Greystar Real Estate Partners.
The transaction is expected to be completed at the end of the second quarter of 2024.
Blackstone has been building a large portfolio of student housing facilities for a number of years, starting with the acquisition of American Campus Communities (ACC) in 2022. ACC plans to open six more dormitories in 2024.
In March 2024, Blackstone sold $1.0 billion worth of warehouses in California and bought part of the loan portfolio for commercial real estate from the bankrupt Signature Bank. In April 2024, Blackstone signed a deal to acquire Apartment Income REIT for $10.0 billion, and in January 2024, it bought out the landlord of Tricon Residential Inc. for $3.5 billion.
In 2016, KKR created University Partners to buy out assets near universities in the United States with financial support from the KKR Real Estate Partners Americas III foundation. About half of the properties are located in markets where University Partners already has experience.
KKR is an American investment company headquartered in New York City. The company specializes in private equity and asset management. Since its founding in 1976, KKR has made 650 investments in the capital of companies worth $675 billion. The company has assets of $470.6 billion under management.
Blackstone Group is one of the largest alternative asset management investment companies with $974.7 billion under management. The headquarters is located in New York with offices in London, Paris, Dusseldorf, Sydney, Tokyo, Hong Kong, Beijing, etc.
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