Blackstone and AIG have agreed to a massive deal involving the sale of $5.1 billion in affordable housing assets.

AIG sold the assets to Blackstone as part of a “long-term strategic asset management relationship” between the two companies, Bloomberg News reported. Blackstone has been pursuing lower-cost rentals to boost its real estate arm, according to the publication.

In May, Blackstone revealed plans to buy around 5,800 apartments in San Diego County from the Conrad Prebys Foundation, which came with a $1 billion price tag. At the time, Blackstone stated a goal of keeping the rentals affordable to residents earning 80 percent or less of the median income in the area.

In 2019, Blackstone executives were part of a failed effort to reach a compromise on rent reform laws in New York. Blackstone also purchased Stuyvesant Town-Peter Cooper in 2015, agreeing at the time to keep 5,000 of the development’s units affordable for at least 20 years.

The deal between AIG and Blackstone was part of a larger transaction that involved AIG selling a 9.9 percent equity stake in its life and retirement business for $2.2 billion in cash. Over the next six years, the deal is expected to bring some $92.5 billion in assets under Blackstone’s management.

AIG and Blackstone shares both rose in extended trading after the deal was announced, up 6.7 percent and 4 percent, respectively.

https://therealdeal.com/2021/07/15/blackstone-buys-5-1b-in-affordable-housing-from-aig/amp/