(Reuters) -Blackstone Group on Tuesday agreed to acquire Home Partners of America, which acquires and rents single-family homes, in a $6 billion deal, the private-equity firm said on Tuesday.
The U.S. housing sector has become red hot, boosted by a strong economic recovery, ultra-low interest rates and continued demand for bigger homes from people working remotely due to the pandemic.
Home Partners owns more than 17,000 houses in the United States that it rents out to tenants who are given an option to buy them eventually.
"The fundamental premise of the Home Partners platform is to provide residents with the opportunity to live in their chosen home with the option to purchase it," Jacob Werner, Blackstone (NYSE:BX) real estate senior managing director, said in a statement.
The deal is expected to close in the third quarter, the companies said.
Goldman Sachs (NYSE:GS) and Co LLC was financial adviser to Home Partners, while Sidley Austin LLP and Fried, Frank, Harris, Shriver & Jacobson LLP acted as its legal counsel.
BofA Securities and Wells Fargo (NYSE:WFC) Securities were financial advisers to Blackstone, while Simpson Thatcher and Bartlett LLP was its legal counsel.