Blackstone to Acquire Home Partners of America for $6B

Blackstone Group’s (BX) Blackstone Real Estate Income Trust (BREIT) has reached an agreement for the acquisition of Home Partners of America (HPA). The transaction values the Chicago-based firm at $6 billion and is set to close in the third quarter, subject to approvals and customary closing conditions.

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With the acquisition, Blackstone Real Estate will gain access to a vast portfolio of high-quality homes across the U.S. HPA will also join with a strong and experienced management team spearheading a resident-led business model. (See Blackstone Group stock chart on TipRanks)

HPA is an ideal acquisition target as it will supplement Blackstone Real Estate’s rental residential properties with over 17,000 homes. Additionally, BREIT will assist the company in its push to expand access to high-quality housing targeting lower-income households.

HPA has already launched Choice Lease, a program designed to address housing affordability challenges in the U.S. BREIT has affirmed its support in expanding the financial planning assistance program at no extra cost.

“The fundamental premise of the HPA platform is to provide residents with the opportunity to live in their chosen home with the option to purchase it — we intend to build on that goal and expand access to homes across the U.S,” said BREIT Senior Managing Director Jacob Werner.

Citigroup analyst William Katz recently maintained a Hold rating on the stock but raised his price target to $91 from $75, implying 7.53% downside potential to current levels.

Consensus among analysts is a Strong Buy based on 9 Buys, and 3 Holds. The average Blackstone Group analyst price target of $91.91 implies 6.61% downside potential to current levels.

BX scores a 6 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.