Source: Landmark Apartment Trust / #Apartments #Multifamily
RICHMOND, VA - Landmark Apartment Trust, a multifamily real estate investment trust with assets located in select metropolitan areas throughout the Southern United States, announced that it has entered into a definitive merger agreement pursuant to which it will be acquired by Monument Partners, an entity owned by affiliates of Starwood Capital Group and Milestone Apartments Real Estate Investment Trust, in an all-cash transaction valued at approximately $1.9 billion, including the assumption of existing debt. Upon completion of the transaction, Landmark will become a privately held company.
Pursuant to the terms of the Merger Agreement, Monument will acquire all of the outstanding common stock of Landmark and all of the outstanding common units of Landmark’s operating partnership, Landmark Apartment Trust Holdings, LP, for $8.17 per share or common unit in an all-cash transaction. Payment of the per share and per common unit consideration is net of all transaction expenses incurred by the Company.
The Board of Directors of the Company has approved the merger agreement and has recommended approval of the merger by Landmark’s stockholders. The transaction is contingent on the approval by stockholders holding a majority of Landmark’s outstanding common stock and outstanding preferred stock, voting together as a single class, and is subject to the satisfaction or waiver of certain other closing conditions. The transaction is expected to close in the first quarter of 2016.
“I am pleased to announce today’s acquisition by Starwood and Milestone. Given that many stockholders have held shares for many years, our Board believes that liquidity is a primary driver for our stockholder constituency. This is an all cash transaction giving stockholders immediate liquidity at closing,” said Ed Kobel, Chairman of the Landmark Board of Directors.
“Today’s announcement marks the successful conclusion of a strategic review process that our Board of Directors undertook earlier this year, which included the potential for an initial public offering. Given recent market volatility, we believe that this merger provides our stockholders with a more certain liquidity event,” said Jay Olander, Chief Executive Officer of Landmark. “Management and the Board of Directors support the transaction and will work diligently to ensure a smooth transition. We’d like to thank our associates for all of their hard work in growing Landmark over the last several years, and we are all very proud of their efforts,” concluded Mr. Olander.