PLANO, TX—Monogram Residential Trust Inc. an owner, operator and developer of apartment communities with a significant presence in select coastal markets, announced the completion of the company's previously announced acquisition by the newly formed perpetual-life fund Greystar Growth and Income Fund LP, led by Greystar Real Estate Partners and its initial founding capital partners, affiliates of APG Asset Management NV, GIC and Ivanhoé Cambridge. The announcement follows Monogram stockholders' vote to approve the merger and the other transactions contemplated by the merger agreement, including the restructuring of Monogram's joint venture with PGGM, on September 14, 2017. The total portfolio transaction value is approximately $4.4 billion, including the PGGM JV and debt assumed or refinanced.
Pursuant to the transaction, Monogram's stockholders will be entitled to receive $12.00 per share in cash. As a result of the transaction, the company's common stock will cease trading on the New York Stock Exchange, effective today.
“The Monogram Residential board of directors and management team are pleased to have completed this transaction which maximizes value for stockholders and partners that entrusted our team over the past several years,” said Mark Alfieri, Monogram's chief executive officer, president and chief operating officer. “The valuation achieved is a testament to the quality of the portfolio and operating platform.”
“This acquisition is highly strategic for Greystar and furthers our mission to be the global leader in rental housing,” said Bob Faith, the founder, chairman and chief executive officer of Greystar. “We are pleased that this acquisition will seed Greystar Growth and Income Fund LP, Greystar's first perpetual-life fund and thrilled to have such tremendous groups as our partners and investors.”
“We are delighted to complete the acquisition of Monogram alongside Greystar and our venture partners,” said Steven Hason, managing director and head of Americas Real Estate and Infrastructure at APG Asset Management. “This continues our strategy of acquiring top-tier properties with operating partners who consistently demonstrate exceptional investment and asset management capabilities, and who share APG's long-term investment objectives.”
Lee Kok Sun, chief investment officer, GIC Real Estate, said, “We are pleased to establish our partnership with Greystar with this acquisition. The US multifamily sector's positive supply-demand dynamics and Monogram's high-quality assets in attractive markets provide a valuable seed portfolio that fits well with the venture's long-term strategy and Greystar's management capabilities.”
“Monogram's irreplaceable portfolio of assets allows Greystar to stand out in the current competitive environment,” said Sylvain Fortier, president, residential, hotels and real estate investment funds at Ivanhoé Cambridge. “This transaction marks both the next step in our strategy of investing in quality residential properties globally and our successful and ongoing partnership with Greystar.”
“This transaction provided us the opportunity to capitalize on our existing investment in Monogram's best-in-class residential portfolio,” said Werner Sohier, senior director private real estate responsible for the Americas at PGGM. “We are excited to partner with Greystar on this opportunity and look forward to the continued long-term success of the venture.”
Morgan Stanley & Co. LLC served as exclusive financial advisor and Goodwin Procter LLP served as legal advisor to Monogram. JP Morgan Securities LLC served as exclusive financial advisor and Jones Day served as legal advisor to Greystar. Morgan, Lewis & Bockius LLP served as legal advisor to PGGM. Walker & Dunlop Inc. arranged the Freddie Mac financing for the transaction.
“As cities continue to re-urbanize and multifamily continues to be a preferred housing option for a growing number of Americans, investing in quality assets in desirable markets is an attractive strategy,” Stephen West of Walker & Dunlop tells GlobeSt.com. “Our deep relationship with Greystar and the GSEs enabled us to secure very favorable financing terms for one of the world's premier multifamily investment firms. We were honored to work with Greystar and their partners on this historic transaction.”
Monogram is a fully integrated self-managed real estate investment trust that invests in, develops and operates multifamily communities offering location and lifestyle amenities. As of June 30, 2017, Monogram's portfolio includes investments in 48 multifamily communities in 10 states comprising 13,438 apartment homes.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- 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
*May exclude premium content© 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.
Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
