Monogram Residential Trust Inc (NYSE:MORE) has announced that its shareholders have approved its acquisition by a perpetual life fund called Greystar Growth and Income Fund that is led by Greystar Real Estate Partners.
The company made the announcement yesterday revealing that its stakeholders had voted in favor of the acquisition. Greystar Growth and Income Fund, which will acquire Monogram was recently formed by Greystar Real Estate Partners together with its founding capital partners, Ivanhoé Cambridge, CIG, and affiliates of APG Asset Management N.V. They agreed to acquire Monogram through a definitive merger agreement that was written down on July 4 this year.
Roughly 70 percent of the outstanding shares that have voting power approved the acquisition of the company and the other transactions that were discussed as part of the merger agreement. This includes the resulting joint venture between Monogram and Stichting Depositary PGGM Private Real Estate Fund.
“The merger, which is expected to close in the second half of 2017, remains subject to the satisfaction or waiver of other customary closing conditions,” pointed out a press release regarding the dealings.
Monogram’s shareholders should receive $12 per share in cash once the proposed merger comes to a close as stated in the terms of the agreement.
What the merger means for both parties
The acquisition of the company is a step in the positive step for both Monogram’s stakeholders as well as for the Greystar Growth and Income Fund. The acquisition of the company means it will secure a better future which is a good thing for investors since this ensures continued growth. As for the fund, the acquisition represents more prospects and thus the potential for higher profit margins as the fund grows its portfolio. Speaking of portfolio, Monogram has investments in 48 multifamily communities in 10 states and they consist of 13,438 apartment homes.
Monogram will most likely continue to increase its portfolio now that it is part of the Greystar Growth and Income Fund. The company invests in stable and operational properties as well as those in the developmental phase.
Monogram stock closed the latest trading session on Thursday at $11.96.
