Canada’s Milestone Apartments REIT to be acquired by Starwood Capital Group
Canada’s Milestone Apartments Real Estate Investment Trust announced that it has entered into an acquisition agreement with an affiliate of Starwood Capital Group pursuant to which Starwood will acquire all of Milestone’s subsidiaries and assets and Milestone unitholders will receive US$16.15 per trust unit in cash. Subject to the satisfaction of all conditions precedent, the Transaction is expected to be completed early in the second quarter of 2017.
“I am extremely proud of what this organization has achieved since the REIT’s 2013 initial public offering including more than doubling the REIT’s enterprise value, more than tripling our equity market capitalization and generating total annual compound returns for our investors in excess of 28%,” said Robert P. Landin, CEO of Milestone. “This compelling all-cash transaction reflects an attractive value for our Unitholders and will position Milestone and its employees for continued growth with an experienced, reputable and very capable strategic owner. I’d like to thank our employees, trustees and all stakeholders for their hard work, support and trust in Milestone over the last several years,” concluded Mr. Landin.
“Today’s announcement can be largely attributed to the REIT’s high quality portfolio of multifamily properties and associated state of the art operating platform,” said Michael Young, Chairman of Milestone’s board of trustees. “The transaction delivers significant and certain value to Unitholders while at the same time providing an excellent opportunity for Milestone’s employees to continue their success.”
Unitholders to receive US$16.15 per Unit in cash, offering certainty of value and liquidity, and representing an aggregate Transaction value of approximately US$2.85 billion;
The Transaction implies an average price per apartment unit of approximately US$120,000, which compares favourably to the book value of approximately US$109,500 per apartment unit.
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