for $7.6 billion, including debt, as dealmaking activity in the real estate sector continues to thrive in the aftermath of the COVID-19 pandemic.
As part of the take-private deal, Blackstone said its real estate affiliates will pay $187.50 cash to shareholders of PS Business Parks, representing a 12% premium from the stock's closing price last week. California-headquartered PS Business Parks operates a portfolio of industrial, business parks, office buildings, and multifamily properties located across California, Florida, Texas and northern Virginia.Mergers and acquisitions activity involving REITs reached a record high in 2021, driven by a robust U.S. housing market, availability of cheap capital from low interest rates, and strong economic recovery from the pandemic.
Blackstone, the world's largest real estate investor, has been a prolific acquirer of REITs, helping drive transaction volumes in the sector to $140 billion in 2021, up from $17 billion in the previous year, according to real estate services provider JLL. Blackstone has already agreed to buy three REITs this year alone. Last week, it struck a deal to acquire student housing REIT American Campus Communities Inc