Bluerock Household Growth REIT To Be Obtained By Affiliate marketers of Blackstone Serious Estate In $3.6 Billion Transaction

Shareholders to Get $24.25 in Hard cash in addition Shares of Bluerock Properties Rely on, Inc., BRG’s Solitary Relatives Rental Business Spin-Off, with an Estimated NAV of $5.60

NEW YORK, Dec. 20, 2021 /PRNewswire/ — Bluerock Household Advancement REIT, Inc. (NYSE American: BRG) (the “Organization”) nowadays announced that it has entered into a definitive settlement with affiliate marketers of Blackstone True Estate (“Blackstone”) beneath which Blackstone will receive all excellent shares of prevalent inventory of BRG for $24.25 for each share in an all-hard cash transaction valued at $3.6 billion (the “Acquisition”).

Bluerock Residential (PRNewsfoto/Bluerock Household Progress REIT, Inc.)

Below the conditions of the arrangement, Blackstone will get 30 multifamily properties comprising around 11,000 units as effectively as a personal loan book secured by 24 multifamily assets. The attributes consist of superior-good quality backyard garden-model property with significant inexperienced area and vacation resort-style features, developed, on normal, in 2000. The the greater part of the qualities are positioned in Atlanta, Phoenix, Orlando, Denver and Austin.

Prior to the Acquisition, the Enterprise individually intends to spin off its solitary-spouse and children rental company to its shareholders (the “Spin-Off” and together with the Acquisition, the “Transaction”) by means of the taxable distribution to shareholders of all of the superb shares of common stock of a newly shaped authentic estate financial investment belief named Bluerock Houses Belief, Inc. (“BHOM”), which will be externally managed by an affiliate of Bluerock Real Estate. BHOM will possess passions in close to 3,400 residences, which include 2,000 by desired/mezzanine investments, located in rapidly expanding, large high-quality of existence and awareness economy markets throughout the United States. The Firm’s shareholders will acquire shares of BHOM, with a present implied Net Asset Worth believed at $5.60 (based mostly on the midpoint of the valuation assortment offered by Duff & Phelps, impartial money advisor to the Company’s board of directors), for each and every share of Corporation widespread stock. There can be no assurance that the trading price upon a listing of BHOM will be equivalent to or better than this believed NAV.

The Transaction has been unanimously permitted by the Company’s board of directors and the Acquisition, excluding the price of BHOM, represents a top quality of around 124% more than the unaffected closing inventory selling price on September 15, 2021, the date prior to a media short article reporting that the Firm was checking out strategic alternatives such as a sale.

“We are really proud to enter into a transaction that delivers great benefit to our shareholders. We imagine the substantial top quality to our historic investing price is a testomony to our accomplishment in making a greatest-in-course institutional-top quality multifamily apartment portfolio in our appealing understanding-economic system target marketplaces, alongside with the strong procedure operate by the board of directors and management to protected greatest value for our shareholders,” explained Ramin Kamfar, Business Chairman and CEO.

Asim Hamid, Senior Managing Director at Blackstone Authentic Estate, said, “Bluerock’s portfolio is made up of higher-high-quality multifamily qualities in markets across the U.S. enduring some of the strongest fundamentals. We search ahead to bringing our greatest-in-class management to these houses to make certain they go on to be operated at the maximum criteria for the gain of tenants and the encompassing communities.”

Completion of the Acquisition, which is currently predicted to come about in the 2nd quarter of 2022, is contingent upon consummation of the Spin-Off, as perfectly as customary closing circumstances, which includes the approval of the Company’s shareholders, who will vote on the transaction at a distinctive meeting on a day to be introduced. The Acquisition is not contingent on receipt of funding by Blackstone.

Most customers of the Firm’s senior administration, alongside with specified entities connected to them, have agreed to retain their pursuits in the Firm’s working partnership, which will hold the belongings related to the solitary-relatives rental business enterprise on completion of the Spin-Off, alternatively than receiving dollars thought.

Morgan Stanley & Co. LLC and Eastdil Secured LLC are the Firm’s guide financial advisors with BofA Securities also serving as an advisor. Wachtell, Lipton, Rosen & Katz, Kaplan Voekler Cunningham & Frank, PLC, and Vinson & Elkins, LLP are serving as the Company’s lawful counsel. Barclays and Wells Fargo Securities LLC are Blackstone’s economic advisors and Simpson Thacher & Bartlett LLP is Blackstone’s legal advisor.

About Bluerock Residential Progress REIT, Inc.
Bluerock Residential Development REIT, Inc. (NYSE American: BRG) is a actual estate financial investment belief that focuses on creating and attaining a diversified portfolio of institutional-good quality very amenitized are living/work/engage in condominium communities in demographically appealing knowledge financial system development marketplaces to enchantment to the renter by decision. The Firm’s objective is to make value through off-market/partnership-dependent transactions and, at the asset amount, by value-add advancements to qualities and to operations. BRG has elected to be taxed as a authentic estate expenditure have faith in (REIT) for U.S. federal profits tax functions.

About Blackstone Real Estate
Blackstone is a world wide leader in genuine estate investing. Blackstone’s authentic estate small business was founded in 1991 and has $230 billion of investor capital beneath administration. Blackstone is the most significant proprietor of business authentic estate globally, owning and functioning assets throughout every single major geography and sector, together with logistics, multifamily and solitary-family housing, office, hospitality and retail. Our opportunistic money seek to acquire undermanaged, nicely-located assets across the world. Blackstone’s Main+ technique comprises open-ended resources that make investments in significantly stabilized authentic estate assets globally and Blackstone Authentic Estate Money Rely on, Inc. (BREIT), a non-mentioned REIT that invests in U.S. revenue-producing property. Blackstone Actual Estate also operates a single of the main world wide actual estate financial debt enterprises, delivering comprehensive funding answers throughout the money structure and hazard spectrum, together with administration of Blackstone House loan Rely on (NYSE: BXMT).

Supplemental Information and In which to Locate It
In relationship with the Acquisition, the Corporation will file pertinent resources with the U.S. Securities and Trade Fee (the “SEC”), which include the Company’s proxy assertion on Program 14A (the “Proxy Assertion”). In addition, in connection with the Spin-Off, BHOM will file a registration statement on Kind 10. This push launch is not a substitute for the Proxy Statement or any other document that the Corporation may perhaps file with the SEC or mail to its shareholders in connection with the proposed transactions. In advance of Making ANY VOTING Conclusion, SHAREHOLDERS OF THE Company ARE URGED TO Browse ALL Relevant Documents Filed WITH THE SEC, Like THE PROXY Statement, WHEN THEY Develop into Accessible Since THEY WILL Comprise Vital Information and facts ABOUT THE PROPOSED TRANSACTIONS. Investors and security holders will be in a position to acquire the paperwork (when available) totally free of cost at the SEC’s website, http://www.sec.gov, and the Firm’s web page, www.bluerockresidential.com. In addition, the documents (when obtainable) might be obtained free of charge of charge by accessing the Trader Relations part of the Company’s site at ir.bluerockresidential.com or by speaking to the Firm’s Investor Relations by e-mail at [email protected]

Individuals in the Solicitation
The Company and its administrators and government officers could be deemed to be participants in the solicitation of proxies from the holders of Company prevalent stock in respect of the proposed transaction. Information about the administrators and executive officers of the Company is set forth in the proxy assertion for the Firm’s 2021 once-a-year conference of stockholders, which was submitted with the SEC on June 25, 2021, in the Firm’s Yearly Report on Variety 10-K for the fiscal yr ended December 31, 2020, which was submitted with the SEC on February 23, 2021 and in other files submitted by the Company with the SEC. Other facts about the participants in the proxy solicitation and a description of their immediate and indirect passions, by security holdings or in any other case, will be contained in the Proxy Assertion and other related elements to be filed with the SEC in regard of the proposed transaction when they turn into offered. Investors should really go through the Proxy Assertion thoroughly when it will become offered just before producing any voting or investment decision choices.

Ahead-On the lookout Statements
This press launch incorporates ahead-wanting statements inside the which means of the Non-public Securities Litigation Reform Act of 1995 and other federal securities rules. All statements other than statements of historical point are “ahead-seeking statements” for purposes of federal and condition securities rules and might be identified by phrases this kind of as “will,” “count on,” “believe,” “approach,” “foresee,” “intend,” “intention,” “long term,” “outlook,” “advice,” “target,” “estimate” and very similar terms or expressions, like the negative version of such text and expressions. These ahead-seeking statements are dependent upon the Firm’s existing anticipations, estimates and projections about the sector and markets in which the Business operates and beliefs of and assumptions produced by Enterprise management, require uncertainty that could result in the precise results, performance or achievements of the Firm to be materially distinct from any potential effects, performance or achievements expressed or implied by such ahead-seeking statements and are not guaranteed to arise. In addition, the Firm disclaims any obligation to publicly update or revise any ahead-hunting assertion to mirror changes in fundamental assumptions or variables, of new information and facts, knowledge or solutions, upcoming occasions or other adjustments. Traders ought to not location undue reliance on these ahead-searching statements. Even though the Corporation thinks that the anticipations reflected in these ahead-searching statements are based on acceptable assumptions, the Company’s actual benefits and functionality could vary materially from all those established forth in these ahead-wanting statements owing to a lot of things. Factors that could have a content adverse effect on our functions, upcoming prospective buyers, the Acquisition and the Spin-Off consist of, but are not minimal to: the occurrence of any occasion, adjust or other circumstance that could give rise to the termination of the merger settlement involving the Organization and Blackstone’s affiliate marketers the failure to receive the approval of the Firm’s shareholders of the Acquisition or the failure to fulfill any of the other situations to the completion of the Acquisition or the Spin-Off the challenges that the current market does not price BHOM shares at NAV the failure to acknowledge the opportunity rewards of the Spin-Off thanks to, amid other explanations, BHOM’s absence of liquidity, smaller sector dimensions or inability to mature and expand revenues and earnings next the Spin-Off shareholder litigation in link with the Acquisition or the Spin-Off, which might have an effect on the timing or incidence of the Acquisition or the Spin-Off or outcome in considerable fees of protection, indemnification and legal responsibility the impact of the announcement of the Acquisition and the Spin-Off on the potential of the Firm to keep and use key staff and sustain relationships with its tenants, vendors and other folks with whom it does small business, or on its functioning results and organizations typically pitfalls involved with the disruption of management’s notice from ongoing business operations thanks to the Acquisition and the Spin-Off the potential to fulfill anticipations concerning the timing and completion of the Acquisition and the Spin-Off the chance that any views, consents or approvals expected in connection with Spin-Off will not be gained or attained in the expected time frame, on the predicted terms or at all and important transaction charges, expenses, expenses and prices. There can be no assurance that the Acquisition, the Spin-Off or any other transaction explained over will in actuality be consummated in the predicted time frame, on the expected phrases or at all. There can be no assurance as to the impression of COVID-19 and other potential foreseeable future outbreaks of infectious disorders on the Company’s or BHOM’s financial condition, benefits of operations, funds flows and overall performance and all those of their respective tenants as effectively as on the economic system and authentic estate and fiscal marketplaces, which may influence the timing or prevalence of the Acquisition or the Spin-Off. For further dialogue of the elements that could have an effect on results, please refer to the risk elements established forth in Product 1A of the Firm’s Yearly Report on Variety 10-K filed by the Organization with the SEC on February 23, 2021, and subsequent filings by the Business with the SEC. Any ahead-looking assertion speaks only as of the day on which it is built, and the Organization assumes no obligation to update or revise this sort of statement, whether as a consequence of new information, upcoming gatherings or or else, except as demanded by applicable law. The Corporation promises the secure harbor security for forward on the lookout statements contained in the Personal Securities Litigation Reform Act of 1995.

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