MEMPHIS and ATLANTA—Confirming published reports, Mid-America Apartment and Post Properties said Monday they had entered a definitive merger agreement that will create the largest publicly traded REIT portfolio in the sector. The all-stock deal is valued at about $4 billion, and the combined company is expected to have a pro forma equity market capitalization of approximately $12 billion and a total market cap of approximately $17 billion.
The merger brings together two complementary multifamily portfolios with a combined asset base consisting of approximately 105,000 multifamily units in 317 properties, located primarily across the Southeast and Southwest. The ten largest markets by unit count for the combined company, which will trade under the MAA name and be headquartered in Memphis, will be Atlanta, Dallas, Austin, Charlotte, Raleigh, Orlando, Tampa, Fort Worth, Houston and Washington, DC.
“The combination of MAA and Post will establish the leading apartment real estate platform focused on the high-growth Sunbelt region of the country with significant competitive advantages to drive superior value for our shareholders, residents and employees,” says H. Eric Bolton, Jr., MAA's chairman and CEO. “The combined company will capture a broader market and submarket footprint, with improved rental price-point diversification that will support an enhanced level of performance over the full real estate cycle.”
He adds that the Post development platform, “with a strong history of value accretive new development, supported by the newly combined company platform, will expand external growth and accretive capital recycling opportunities for MAA.” David P. Stockert, Post's CEO and president, says the combined company will have a “unique position in the apartment REIT space,” which combined with the strength of its financial position, “should drive an advantageous cost of capital and value for shareholders of both companies.”
Citigroup Global Markets Inc. is acting as financial advisor, and Goodwin Procter LLP and Bass, Berry & Sims are acting as legal advisors to MAA. For Post, JP Morgan is acting as financial advisor and King & Spalding is acting as legal advisor. The merger is expected to close by year's end.
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
MEMPHIS and ATLANTA—Confirming published reports, Mid-America Apartment and Post Properties said Monday they had entered a definitive merger agreement that will create the largest publicly traded REIT portfolio in the sector. The all-stock deal is valued at about $4 billion, and the combined company is expected to have a pro forma equity market capitalization of approximately $12 billion and a total market cap of approximately $17 billion.
The merger brings together two complementary multifamily portfolios with a combined asset base consisting of approximately 105,000 multifamily units in 317 properties, located primarily across the Southeast and Southwest. The ten largest markets by unit count for the combined company, which will trade under the MAA name and be headquartered in Memphis, will be Atlanta, Dallas, Austin, Charlotte, Raleigh, Orlando, Tampa, Fort Worth, Houston and Washington, DC.
“The combination of MAA and Post will establish the leading apartment real estate platform focused on the high-growth Sunbelt region of the country with significant competitive advantages to drive superior value for our shareholders, residents and employees,” says H. Eric Bolton, Jr., MAA's chairman and CEO. “The combined company will capture a broader market and submarket footprint, with improved rental price-point diversification that will support an enhanced level of performance over the full real estate cycle.”
He adds that the Post development platform, “with a strong history of value accretive new development, supported by the newly combined company platform, will expand external growth and accretive capital recycling opportunities for MAA.” David P. Stockert, Post's CEO and president, says the combined company will have a “unique position in the apartment REIT space,” which combined with the strength of its financial position, “should drive an advantageous cost of capital and value for shareholders of both companies.”
Steady gains in the US economy have resulted in net positives for the multifamily sector—will this wave continue for the foreseeable future? What's driving development and capital flows? Join us at RealShare Apartments on October 19 & 20 for impactful information from the leaders in the National multifamily space. Learn more.
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