The headline news from Blackstone and American International Group is that Blackstone is acquiring a 9.9% equity stake in AIG's Life & Retirement business for $2.2 billion in an all cash transaction.
But the two companies also struck a separate deal announced at the same time in which Blackstone Real Estate Income Trust is acquiring AIG's interest in a US affordable housing portfolio for $5.1 billion, also for cash. This transaction, subject to customary closing conditions, is expected to close in the fourth quarter of 2021.
The affordable housing assets are no longer a core play for AIG, says Peter Zaffino, president and CEO of AIG. "We believe Blackstone has the right expertise and commitment to stakeholders to manage these assets going forward."
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
