Blackstone has agreed to buy a $5.1bn portfolio of rent-controlled apartments geared towards low-income families in its second big bet on the US housing market in less than a month.
The deal covers 678 “affordable housing communities” in cities including Boston, San Francisco and Seattle, according to a person familiar with the terms.
All of the developments have received tax credits from the US government in exchange for agreeing to stringent restrictions on rent and occupancy that are intended to make it easier for people on low incomes to find homes.
The housing purchase is part of a $7.3bn deal with AIG, under which Blackstone will also take a 9.9 per cent stake in the US insurance group’s life and retirement business, and assume responsibility for tens of billions of dollars of assets on behalf of the insurer.
The AIG transaction comes after Blackstone last month spent $6bn acquiring Home Partners of America, which buys and…