Mid-America Apartment Communities will acquire Atlanta-based Post Properties in an all-stock deal valued at nearly $4 billion.
Under the terms of the agreement, approved unanimously by both boards of directors, holders of Post common stock will get 0.71 shares of new MAA common stock and own about 32.3% of the combined company with MAA stockholders owning about 67.7%.
The tax-deferred transaction, expected to be completed during the fourth quarter of 2016, will create a company with a total market capitalization of $17 billion, the companies said.
After the merger, Mid-America Apartments will have about 105,000 multifamily units in 317 properties in Atlanta, Dallas, Austin, Charlotte, Raleigh, Orlando, Tampa, Fort Worth, Houston and Washington, DC.
Memphis, Tenn.-headquartered Mid-America currently owns or has ownership interest in 80,846 apartment units in 15 states in the Southeast and Southwest U.S. Post Properties has 24,162 apartment units in 61 communities in Georgia, Texas, Florida, North Carolina, Maryland, Virginia and Washington. .
http://www.usatoday.com/story/money/business/2016/08/15/mid-america-apartment-pay-4b-post-properties/88752934/
I worked the numbers and came out with $175k per unit, 11 times gross annual revenues and front end cap rate in 4.5% range all MOL from info I found.. Given these are suburban garden style apartments most in fast growing sunbelt seems Housingbubble 2.0 is in full swing.. |
