Real Estate - JULY 5, 2017

Greystar to acquire Monogram in $3b deal

by Andrea Waitrovich

A new fund led by Greystar Real Estate Partners has plans to acquire U.S. apartment developer Monogram Residential Trust Inc. in a deal valued at about $3 billion.

The new fund led by Greystar, called Greystar Growth and Income Fund, also received additional founding capital from affiliates of Dutch pension capital investor APG Asset Management N.V., Singaporean sovereign wealth fund GIC and Canadian real estate investor Ivanhoe Cambridge.

The $3 billion aggregate transaction value includes Monogram’s share of its two institutional co-investment joint ventures with PGGM and NPS. The PGGM joint venture will be restructured, and the joint venture interests held by NPS will be purchased by Greystar pursuant to a separate assignable purchase and sale agreement for approximately $500 million, subject to certain adjustments at closing, including payment of the NPS joint venture’s share of debt to be assumed or refinanced in connection with the transaction.

The transaction is expected to close in the second half of 2017.

As of March 31, 2017, Monogram’s portfolio includes investments in 49 multifamily communities in 10 states comprising 13,674 apartment homes.

The deal follows several recent billion-dollar deals:

Aberdeen, Standard Life shareholders approve merger

Sabra Health Care and Care Capital Properties to merge

CPPIB to buy Parkway in $1.2b deal

Government Properties Income Trust to acquire First Potomac Realty Trust for $1.4b

Chinese investor offers $3b to acquire Brookdale

Digital Realty Trust buys data center operator for $7.6b

Blackstone confirms €12.25b sale of Logicor

Forest City to sell $4b U.S. retail portfolio to Australian partner

Duke Realty sells medical office business for $2.8b

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