Education Realty Trust, Inc. (NYSE: EDR), one of the nation’s largest developers, owners, and managers of collegiate housing communities, announced that it has been acquired a newly formed, perpetual-life fund, Greystar Student Housing Growth and Income Fund, LP, an affiliate of Greystar Real Estate Partners. Greystar Student Housing and Income Fund will pay $41.50 per share in cash, a 1.6 percent premium from the closing price on Friday, to Education Realty shareholders, valuing the transaction at approximately $4.6 billion, including debt to be assumed or refinanced.
"As a public company, one of our priorities is to maximize stockholder value and we believe this transaction with Greystar accomplishes that goal. We are certain today's announcement is in the best interest of all of EdR's stakeholders, including university partners, employees and stockholders,” said Randy Churchey, Education Realty’s Chief Executive Officer and Chairman of the Board of Directors.
The transaction is currently expected to come to a conclusion in the second half of 2018. It is subject to customary closing conditions, including the approval of Education Reality stockholders, who will take a vote on the transaction during a special meeting. If the transaction is not completed by October 15, 2018, Education Realty stockholders will receive approximately $0.00435 per share per day after October 15, 2018 until the closing date.
Greystar also announced that it is making a joint venture with a real estate unit of Blackstone, buying a portfolio of off-campus student housing assets from Education realty for $1.2 billion. Greystar and Education Realty will own an estimated $10 billion in portfolio of income-generation real in U.S. markets, the companies said.