Blackstone to Buy PS Business Parks for $7.6B
Blackstone will acquire a 27 million square foot portfolio of a variety of asset types in California, Miami, Texas and Northern Virginia.
Affiliates of Blackstone have agreed to acquire PS Business Parks for $7.6 billion, a deal that follows on the heels of Blackstone’s recent announcement that it was acquiring ACC.
PS Business Parks’ shares will trade for $187.50 per unit in the all-cash transaction, a premium of approximately 15% to the volume weighted average share price over the last 60 days.
Under the deal Blackstone will acquire a 27 million square foot portfolio of industrial, business park, traditional office, and multifamily properties located primarily in California, Miami, Texas and Northern Virginia.
The transaction is expected to close in the third quarter of 2022, subject to approval by PSB’s stockholders and other customary closing conditions.
The merger agreement includes a “go-shop” period that will expire on May 25, 2022.
Simon Thacher & Bartlett LLP is serving as Blackstone’s legal counsel. J.P. Morgan Securities LLC is acting as lead financial advisor to PSB and provided a fairness opinion to the PSB board of directors in connection with the transaction. Eastdil Secured is acting as real estate advisor to PSB and is also acting as a co-financial advisor to PSB. Wachtell, Lipton, Rosen & Katz is serving as PSB’s legal advisor.