(Reuters) -Asset manager Blackstone said on Monday it would take private rental housing firm Apartment Income REIT ( AIRC ), known as AIR Communities, for $10 billion in cash, including debt.

Under the deal, Blackstone will pay $39.12 for each share of the real estate investment trust, representing a premium of about 25% to its closing price on Friday. Shares of the REIT jumped 23.64% in premarket trading.

Blackstone also plans to invest another $400 million to improve the REIT's 76 rental housing communities, which are located in primarily coastal markets, the company said.

(Reporting by Ananta Agarwal in Bengaluru; Editing by Arun Koyyur)