Monogram Residential Trust Inc. announced Tuesday, July 4, its merger agreement to be acquired by the newly-formed Greystar Growth and Income Fund LP, in a $3 billion arrangement. The deal includes all debt to be assumed or refinanced by the fund; comprised of Greystar Real Estate Partners, affiliates of APG Asset Management N.V., GIC and Ivanhoé Cambridge.
Monogram is an owner, operator and developer of coastal luxury apartments.
According to a news release, the transaction is expected to close before 2017 comes to an end, and will need to be approved by Monogram’s stockholders, though the agreement was unanimously approved by Monogram’s Board of Directors.
“We are pleased to have reached this agreement, which maximizes value at a substantial premium to our existing share price,” said Alan Patton, Monogram’s Chairman of the Board of Directors, in the release. “We are confident that today’s announcement represents the best path forward for all of Monogram’s stockholders.”
The terms provide Monogram’s stockholders $12.00 per share in cash and about 22 percent of the company’s July 3 closing stock price. Additionally, the negotiation includes Monogram’s share of its joint ventures with PGGM and NPS.
The transaction is not contingent on receipt of financing by Greystar, according to the release.
Financial advisors to Monogram and Greystar respectively are Morgan Stanley & Co. LLC and J.P. Morgan Securities LLC, with legal advisors as Goodwin Procter LLP and Jones Day respectively.
“We are excited to add Monogram’s high-quality assets in some of the best markets in the country as the seed portfolio for Greystar Growth and Income Fund, LP, our flagship core-plus perpetual life vehicle,” said Bob Faith, Greystar founder, chairman and chief executive officer, in the release. “The collective strength and experience of our high-quality investment partners are second to none, and we look forward to completing this transaction and further expanding Greystar’s U.S. multifamily platform.”
Monogram will release its second-quarter financial results in early August.