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Essex JV Offers $633M for Town and Country Trust

PALO ALTO, CA-Locally headquartered Essex Property Trust leads a three-member LLC proposing to acquire all the outstanding common shares of the Baltimore-based multifamily REIT, whose board of trustees already has an agreement to be acquired by a joint venture of Morgan Stanley Real Estate and Onex Real Estate affiliates for $596 million.

By Brian K. Miller | Updated on January 31, 2006

(To read more on the multifamily market, click here.)

PALO ALTO, CA- Oriole Partnership, a three-member joint venture led by locally based Essex Property Trust, has proposed to acquire all the outstanding common shares of the Baltimore-based Town and Country Trust for $36 per share, or $633 million based on Monday’s closing price. The offer is $2.10 per share higher than the $596-million merger agreement Town and Country’s board of trustees signed last month with Magazine Acquisition, a joint venture that includes affiliates of Morgan Stanley Real Estate and Onex Real Estate, a unit of Canada’s publicly held Onex Corp. Including debt assumption, both deals are valued at between $1.3 billion and $1.4 billion.

In response to the new non-binding offer, Town and Country’s board of trustees has provided non-public information to Oriole Partnership and will enter into discussions with the JV regarding the proposal, which includes the $20 million breakup fee specified in Town and Country’s merger agreement with Morgan Stanley-Onex. Town and Country’s board continues to recommend the existing transaction with Magazine Acquisition, but a firm bid from Oriole Partnership could change its mind.

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