Blackstone to Buy PS Business Parks in Deal Valued at $7.6 Billion

By Will Feuer

Blackstone Inc. said it has agreed to buy PS Business Parks Inc. in a deal valued at $7.6 billion.

Blackstone said it would pay $187.50 for each outstanding share of PS Business Parks in an all-cash deal.

The purchase price marks a premium of about 15% over the volume-weighted average share price of PS Business Parks' stock over the last 60 days, Blackstone said.

PS Business Parks, a real-estate investment trust, owns, operates and develops commercial suburban properties mostly in California, Miami, Texas and Northern Virginia.

The deal is expected to close in the third quarter of 2022.

Separately, Public Storage, another real-estate investment trust, said it owns a 41% common equity interest in PS Business Parks through shares and limited partnership units. Public Storage said it has agreed to vote its shares in favor of the deal.

Public Storage said it expects to receive about $2.7 billion of cash proceeds from the deal and recognize a $2.3 billion tax gain on the sale. Public Storage said it plans to distribute the $2.3 billion gain to its shareholders.

Write to Will Feuer at [e-mail]

(END) Dow Jones Newswires

April 25, 2022 09:29 ET (13:29 GMT)

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