Blackstone Real Estate’s $3.6 Billion Acquisition of Bluerock Residential Growth REIT

Wachtell, Lipton, Rosen & Katz, Kaplan Voekler Cunningham & Frank, and Vinson & Elkin advised BRG, while Simpson Thacher & Bartlett advised Blackstone on the deal.

Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) has entered into a definitive agreement with affiliates of Blackstone Real Estate under which Blackstone will acquire all outstanding shares of common stock of BRG for $24.25 per share in an all-cash transaction valued at $3.6 billion.

Prior to the acquisition, BRG separately intends to spin off its single-family rental business to its shareholders through the taxable distribution to shareholders of all of the outstanding shares of common stock of a newly formed real estate investment trust named Bluerock Homes Trust, Inc., which will be externally managed by an affiliate of Bluerock Real Estate. 

The acquisition, excluding the value of Bluerock Homes Trust, which has a current implied NAV estimated at $5.60 per BRG share, represents a premium of approximately 124% over the unaffected closing stock price on September 15, 2021, the date prior to a media article reporting that BRG was exploring strategic options including a sale. 

Bluerock Residential Growth REIT, Inc. (NYSE American: BRG) is a real estate investment trust that focuses on developing and acquiring a diversified portfolio of institutional-quality highly amenitized live/work/play apartment communities in demographically attractive knowledge economy growth markets to appeal to the renter by choice. 

Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $230 billion of investor capital under management. Blackstone is the largest owner of commercial real estate globally, owning and operating assets across every major geography and sector, including logistics, multifamily and single-family housing, office, hospitality and retail. 

Morgan Stanley & Co. LLC and Eastdil Secured LLC are the BRG’s lead financial advisors with BofA Securities also serving as an advisor. Barclays and Wells Fargo Securities LLC are Blackstone’s financial advisors.

The Wachtell Lipton’s team was led by partners David E. Shapiro (Picture) and Victor Goldfeld and included Matthew T. Carpenter, Associate, Elizabeth A. Ingriselli, Associate, Ellis Liang, Associate, Ram Sachs, Associate, Alec G. Miller, Law Clerk (Corporate), Tijana J. Dvornic, Partner, Susan R. Yaster, Associate (Tax), Adam J. Shapiro, Partner, Dixing Tang, Associate (Executive Compensation and Benefits), Eric M. Rosof, Partner, John H. Bailey, Associate, Taylor G. Custer, Associate (Restructuring and Finance), Mark A. Koenig, Counsel, and Dianna Chen, Counsel (Real Estate M&A).

The Simpson Thacher team includes Brian Stadler, Matt Rogers, Beth DiSciullo and Saqeef Ahmad (M&A); Krista Miniutti, Jason Mohr, Matt Freeze, Joe DeQuinzio, Lucas Fernandez-Rocha and Kristen Lucas (Real Estate); Nancy Mehlman and Shoshana Schorr (Tax); Andrew Blau, Harry Hudesman and Charles Pfeifer (Executive Compensation and Employee Benefits); Noreen Lavan and Tim Mulvihill (Environmental); and Melanie Jolson (Intellectual Property).

The V&E team was led by partner Chris Mangin, senior associate Paige Anderson and associate Christina McLeod.

Involved fees earner: Saqeef Ahmad – Simpson Thacher & Bartlett; Andrew Blau – Simpson Thacher & Bartlett; Joe Dequinzio – Simpson Thacher & Bartlett; Elizabeth Disciullo – Simpson Thacher & Bartlett; Lucas Fernandez-Rocha – Simpson Thacher & Bartlett; Matthew Freeze – Simpson Thacher & Bartlett; Harry Hudesman – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Noreen Lavan – Simpson Thacher & Bartlett; Kristen Lucas – Simpson Thacher & Bartlett; Nancy Mehlman – Simpson Thacher & Bartlett; Krista Miniutti – Simpson Thacher & Bartlett; Jason Mohr – Simpson Thacher & Bartlett; Timothy Mulvihill – Simpson Thacher & Bartlett; Charles Pfeifer – Simpson Thacher & Bartlett; Matthew Rogers – Simpson Thacher & Bartlett; Shoshana Schorr – Simpson Thacher & Bartlett; Brian Stadler – Simpson Thacher & Bartlett; Paige Anderson – Vinson & Elkins LLP; Christopher Mangin Jr. – Vinson & Elkins LLP; Christina McLeod – Vinson & Elkins LLP; John Bailey – Wachtell, Lipton, Rosen & Katz; Matthew Carpenter – Wachtell, Lipton, Rosen & Katz; Dianna Chen – Wachtell, Lipton, Rosen & Katz; Tijana Dvornic – Wachtell, Lipton, Rosen & Katz; Victor Goldfeld – Wachtell, Lipton, Rosen & Katz; Elizabeth Ingriselli – Wachtell, Lipton, Rosen & Katz; Mark Koenig – Wachtell, Lipton, Rosen & Katz; Ellis Liang – Wachtell, Lipton, Rosen & Katz; Eric Rosof – Wachtell, Lipton, Rosen & Katz; Ram Sachs – Wachtell, Lipton, Rosen & Katz; David Shapiro – Wachtell, Lipton, Rosen & Katz; Adam Shapiro – Wachtell, Lipton, Rosen & Katz; Dixing Tang – Wachtell, Lipton, Rosen & Katz; Susan Yaster – Wachtell, Lipton, Rosen & Katz;

Law Firms: Simpson Thacher & Bartlett; Vinson & Elkins LLP; Wachtell, Lipton, Rosen & Katz;

Clients: Blackstone; Bluerock Residential Growth REIT;