© Reuters. FILE PHOTO: The ticker and trade information for the Blackstone Group will be posted on the New York Stock Exchange (NYSE) floor on April 4, 2016. REUTERS / Brendan McDermid
(Reuters) – Blackstone Group on Tuesday agreed to take over Home Partners of America, which buys and rents single-family homes, in a $ 6 billion deal, the private equity firm said on Tuesday.
The U.S. real estate sector has turned red hot, fueled by a strong economic recovery, extremely low interest rates, and continued demand for larger homes from people working remotely due to the pandemic.
Home Partners owns more than 17,000 homes in the United States that it rents to tenants who are given an option to buy.
“The basic premise of the Home Partners platform is to give residents the opportunity to live in their chosen home with the option to buy it,” said Jacob Werner, senior managing director of Blackstone (NYSE 🙂 Real Estate , in a statement.
The deal is expected to close in the third quarter, the companies said.
Goldman Sachs (NYSE 🙂 and Co LLC served as financial advisor to Home Partners while Sidley Austin LLP and Fried, Frank, Harris, Shriver & Jacobson LLP served as legal counsel.
BofA securities and Wells Fargo (NYSE 🙂 Securities were Blackstone’s financial advisers, while Simpson Thatcher and Bartlett LLP were legal counsel.
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