Blackstone Inc to acquire student-housing owner American Campus Communities Inc. in a deal valued at $12.8B, according to a report by The Wall Street Journal on Tuesday.

  • Austin, Texas-based ACC is the biggest publicly traded owner and developer of student housing in the U.S. The arrangement marks Blackstone’s single biggest investment into the sector to date.
  • Rent collections in student housing remained extremely high during the pandemic, despite an expansive period in 2020 where many students attended classes virtually.
  • The sector is set to benefit from having little new student-housing construction, signaling that property owners face little new competition.
  • A national housing shortage is leading to an increase in rent close to campus and the return of more international students will boost demand further.

Last summer, a Blackstone affiliate agreed to acquire a majority holding in eight student-housing properties for $784 million. BX up +0.66%, APO is up +0.42% Pre-market trading