Blackstone has stated that it has reached a deal to purchase PS Business Parks Inc. for roughly $7.6 billion including debt.
Business Parks deals primarily in commercial real estate which has been upended since the covid-19 pandemic. The acquisition is the latest of Blackstone’s moves in real estate after the company agreed to purchase American Campus Communities last week for $12.8 billion betting on students returning to campuses across the country.
PS Business Parks owns and operates industrial and low-rise office space within suburban communities primarily in Miami, Texas, and Virginia. The company owns a total of 96 properties and has nearly 5,000 tenants.
Public Storage, which owns roughly 26% of PS Business Parks stock, has agreed to vote in favor of the acquisition and expects to receive $2.7 billion from the deal which $2.3 billion of that will be distributed to shareholders.
Blackstone has agreed to pay $187.50 per share which is 15% more than the average share price over the past 60 days. The deal between Blackstone and PS Business Parks is expected to close in the third quarter of 2022.
Source: Wall Street Journal