Lone Star Funds buying Home Properties for about $4.36B

NEW YORK (AP) – Private equity firm Lone Star Funds is taking Home Properties private for approximately $4.36 billion.

Dallas’ Lone Star will pay $75.23 per Home Properties share, a 3 percent premium to the real estate investment trust’s Friday closing price of $72.73.

The companies put the total value of the deal at about $7.6 billion including debt.

Home Properties, based in Rochester, New York, may seek third-party proposals over the next 30 days.

- FWBP Digital Partners -

The transaction is targeted to close in the fourth quarter. It still needs approval from Home Properties shareholders.

Separately, Home Properties Inc. is exchanging a portfolio of up to six properties with UDR Inc. for a combination of cash and newly issued units of a new subsidiary of UDR.