Affiliates of Blackstone Real Estate plan to buy Glendale-based PS Business Parks for $187.50 a share in cash in a deal totaling $7.6 billion. The price is roughly a 15% premium over PSB’s average share price over the last two months.
If the deal goes through, Blackstone will take ownership of about 27 million square feet of industrial and office properties, business parks and rental housing properties in California, Miami, Texas and Northern Virginia.
The company’s largest shareholder, Public Storage, which owns about 26% of shares, has agreed to vote in favor of the transaction, according to the statement. PS Business Parks was a spinoff of Public Storage, also in Glendale.
“We are excited to add PS Business Parks’ business park, office and industrial assets to our portfolio and look forward to leveraging our expertise to provide the best possible service and experience for PSB’s customers,” said David Levine, co-head of Americas acquisitions for Blackstone Real Estate, in a statement.
The transaction is expected to close in the third quarter, pending approval by PS Business Park stockholders.
In the last year, PS Business Parks has engaged in several big transactions. They include the sale of the Lusk Business Park in San Diego for $315 million and the purchase of the Port America facility in Grapevine, Texas, for $123 million.
The company announced the buyout on Monday. Shares of PS Business Park (PSB) closed Tuesday down 20 cents, or a fraction of a percent, to $187.30 on the New York Stock Exchange, while the Dow closed down 2.4 percent.