Monogram Residential Trust Inc (NYSE:MORE) has finalized a definitive merger deal, wherein the company would be bought by Greystar Growth and Income Fund, LP headed by Greystar Real Estate Partners and its preliminary founding capital associates, Ivanhoé Cambridge and members of APG Asset Management N.V., GIC. The deal is valued at around $3 billion, comprising debt to be refinanced or assumed.
As per the planned merger deal, which was approved by Monogram’s Board, Monogram’s stockholders will get $12 a share in cash. This indicates a premium of around 22% to company’s closing stock price on July 3, the last trading session prior to the public report of the deal. The aggregate deal value of $3 billion comprises Monogram’s stock of its two institutional co-investment JVs with NPS and PGGM.
The PGGM JV will be restructured, while the JV interests owned by NPS will be bought by Greystar pursuant to a distinct assignable purchase and sale deal for almost $0.5 billion, dependent on certain adjustments at completion, including imbursement of the NPS JV’s share of debt to be refinanced or assumed in connection with the deal.
Alan Patton of Monogram said that they are delighted to have finalized this deal, which increases value at a considerable premium to MORE current share price. They are confident that the latest announcement indicates the best path forward for company’s stockholders. Mark Alfieri, the CEO, COO and President of Monogram, said that this deal is the outcome of company’s success at delivering and executing on strong operations, unique development plans and investment plans in combination with skillful market timing.
The interest they received from this expert group of investors exhibits that their targeted focus on building their portfolio with top quality Class ‘A’ assets in selected core markets has been identified and company’s joint venture partners and stockholders are rewarded with this positive outcome.