Monogram Residential Trust Sold for $3 Billion

Monogram Residential Trust sold for $12 per share in cash

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Monogram Residential Trust (MORE) announced that it has entered into a definitive merger agreement to be acquired by a newly formed perpetual life fund, Greystar Growth and Income Fund, in a transaction valued at approximately $3B, including debt to be assumed or refinanced.

Monogram Residential Trust, Inc. is an equity real estate investment trust. The trust invests in the real estate markets of United States. It engages in investment, development and operation of real estate assets. The trust’s portfolio comprises of high-quality multifamily communities, including conventional multifamily assets, such as mid-rise, high-rise, and garden-style properties; age-restricted residences and student housing

Under the terms of the merger agreement, which was unanimously approved by board, Monogram’s stockholders will receive $12.00 per share in cash.

This represents a premium of approximately 22% to Monogram’s unaffected closing stock price on July 3.

The $3B aggregate transaction value includes Monogram’s share of its two institutional co-investment joint ventures with PGGM and NPS.

The PGGM joint venture will be restructured, and the joint venture interests held by NPS will be purchased by Greystar pursuant to a separate assignable purchase and sale agreement for approximately $500 Million, subject to certain adjustments at closing, including payment of the NPS joint venture’s share of debt to be assumed or refinanced in connection with the transaction.

The transaction is expected to close in the second half of 2017 and is subject to approval by Monogram’s stockholders and other customary closing conditions.

The transaction is not contingent on receipt of financing by Greystar.

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The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility.

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