PALO ALTO, CA-Multifamily REIT Essex Property Trust Inc. has made an offer to acquire rival BRE Properties for approximately $5 billion, Bloomberg reported Wednesday. The offer is higher than the bid of $60 per share made by Land & Buildings and an investor group earlier this year, a source told Bloomberg.
Constance B. Moore, BRE's CEO, told investors in July that her company would consider “any legitimate proposal.” Her comments came after BRE had issued a statement turning down Land & Buildings' bid.
In addition to bank financing, Essex would issue stock and sell assets to pay for the BRE takeover, Bloomberg reported. Both REITs are concentrated in gateway markets on the West Coast; BRE had turned down an earlier offer from Essex.
BRE, which has more than one-quarter of its apartments in the San Francisco area, where it's based, has been working with Wells Fargo to evaluate possible options including a sale, sources told Bloomberg. GlobeSt.com will report more information as it becomes available.
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