Search
 

ACC Closes on $1.4B Acquisition

NEWTON SQUARE, PA-This complex transaction consists of two portfolio spin-offs worth $676 million, a $200-million term loan and the sale of 4.5 million ACC shares.

By Erika Morphy | Updated on June 12, 2008

NEWTON SQUARE, PA-American Campus Communities Inc., an Austin, TX-based developer, owner and manager of student housing properties, has closed on its $1.4-billion acquisition of locally-based GMH Communities Trust’s student housing portfolio, first revealed earlier this year. Besides nearly doubling its size, the transaction increases ACC’s total market capitalization to $2.5 billion from $1.3 billion.

Each common share of GMH and each unit of GMH’s operating partnership has been converted into the right to receive 0.07642 of a share of ACC common stock and $3.36 per share in cash. This is in addition to the previously announced special distribution of $1.71, which GMH shareholders received when the deal closed.

The cash-and-stock deal consisted of several moving parts including ACC’s assumption of the portfolio’s outstanding debt, which totaled approximately $963 million and a separate transaction in which GMH’s military housing portfolio was sold to a US subsidiary of Balfour Beatty Plc for $350 million.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.