Residential firms merge in separate deals for $13b
In separate deals, two U.S. single-family rental REITs have agreed to merge, and two German firms as well, for a total of $12.9 billion.
Starwood Waypoint Residential Trust and Colony American Homes — two single-family home rental firms — have agreed to merge. The combined company is expected to own and manage more than 30,000 homes and have an aggregate asset value of $7.7 billion at the closing of the transaction.
Colony American shareholders will receive Starwood Waypoint shares, giving Colony American shareholders approximately 59 percent of the merged firm, while Starwood Waypoint shareholders and the Starwood Waypoint manager will hold 41 percent. In addition, the Starwood Waypoint manager — an affiliate of Starwood Capital Group — will be internalized, making the combined firm internally managed. The merger is expected to achieve estimated annualized cost synergies of $40 million to $50 million.
The deal follows Northern