Greystar Real Estate Partners, the largest operator of apartments in the United States, announced on Tuesday that it will acquire luxury U.S. apartment developer, Monogram Residential Trust, Inc. (NYSE: MORE), in a deal valued at about $3 billion, according to Reuters.
Monogram, based in Plano, Texas, operates and develops luxury apartment communities in coastal and urban markets including southern Florida and Boston.
Shareholders will receive $12 per share in cash in the deal, representing a 22 percent premium to Monogram’s closing price on July 3. Snow Park Capital Partners LP, last year urged Monogram to explore strategic alternatives including a sale because its shares were trading at a significant discount. Analysts have noted that Monogram faces subpar performance and substantial debt maturities this year and next.
The new fund, called Greystar Growth and Income Fund LP, also received additional founding capital from affiliates of Dutch pension capital investor APG Asset Management N.V., Singaporean sovereign wealth fund GIC and Canadian real estate investor Ivanhoe Cambridge.
In addition to its U.S. investments, Greystar has been expanding abroad, scouting out opportunities in major Chinese cities and planning to own 10,000 apartments across London by 2021.