Why Education Realty Trust May Be The Next REIT To Go Private

EdR recently broke ground on SouthSide Commons with Lehigh University in Bethlehem, Pa.

MEMPHIS, TN–There have been numerous media reports that a private equity company or companies — in particular, according to the Wall Street Journal, Greystar Real Estate Partners LLC — is in serious talks with the student housing REIT Education Realty Trust to take it private. The Journal reports  that an announcement will be made this week, presumably today, that Greystar is acquiring EdR for $3.1 billion, or $41.50 a share, give or take.

In general, this clearly is the season of the deal not only for REITs, because of their discounted stocks, but also for all owners of quality assets. Both public and private companies are snatching up quality holders of quality assets in hopes of gaining market share or expanding deal flow.

Disrupting Deals

Activity is so frenzied that even deals in which the buyer and seller have struck an agreement are in danger of being disrupted as new bidders emerge to offer something better. Such is the case with the Blackstone-LaSalle Hotel Properties’ pending $4.8 billion acquisition, with Pebblebrook Hotel Trust recently submitting a revised offer for LaSalle.