PALO ALTO, CA-So, it's official. Locally based Essex Property Trust Inc. and BRE Properties Inc. are in negotiations. Essex made an official announcement that it has made a “non-binding proposal” to acquire BRE in a “negotiated strategic business combination.”
Under the proposal, each outstanding share of BRE common stock would be exchanged for 0.2971 shares of Essex common stock and $12.33 in cash. The companies are currently engaged in discussions and have agreed to an exclusivity period.
There can be no assurances that any transaction will be entered into or consummated, says Essex. Pursuant to the terms of a confidentiality agreement, Essex cannot discuss or disclose developments with respect to these discussions unless and until both Boards have approved a transaction.
GlobeSt.com will update this story as we learn more, but as we reported recently, the deal is said to be around $5 billion. The offer is higher than the bid of $60 per share made by Land & Buildings and an investor group earlier this year, a source told Bloomberg in early December.
Constance B. Moore, BRE's CEO, told investors in July that her company would consider “any legitimate proposal.” Her comments came after BRE had issued a statement turning down Land & Buildings' bid.
BRE, which has more than one-quarter of its apartments in the San Francisco area, where it's based, has been working with Wells Fargo to evaluate possible options including a sale, sources previously told Bloomberg.
Continue Reading for Free
Register and gain access to:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
© 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.
Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
