Camden Property Trust announced that it plans to acquire the remaining ownership interests in two discretionary funds, with a gross valuation of $2.1 billion, that it has held with the Teacher Retirement System of Texas. Camden has a 31.3% interest while the pension fund has the 68.7% that Camden will acquire. The deal is expected to close early in the second quarter of 2022.

After an adjustment for $520 million in existing secured mortgage debt that will remain outstanding after closing, Camden will pay approximately $1.1 billion. The payment will come from a combination of cash on hand and borrowing against a $900 million unsecured credit line. As of December 31, 2021, Camden had $613.4 million in cash and cash equivalents, according to its 10-K.

The fund assets that are part of the transaction include 22 multifamily communities with 7,247 apartment homes with an average age of 12 years, primarily located in Sunbelt markets across Camden's portfolio. The company expects an initial funds from operations (FFO) yield of 4.25%, or $0.08 per share assuming an April 1, 2022 close.