LAKE PARK, Fla., June 26, 2019 (GLOBE NEWSWIRE) -- American Landmark/Electra America (“ALEA”), the owner and operator of multifamily properties in the U.S., announced that it has today submitted to the Board of Pure Multi-Family REIT LP (TO:RUF.U) (TO:RUF.UN) (“Pure”) a written proposal to acquire 100% of the outstanding Class A Units (“Units”) of Pure for an enhanced all-cash price per Unit of US$7.61 (equivalent to CDN $10.03 based on yesterday’s exchange rate) representing a 15% premium to the Units’ last closing 20-day volume-weighted-average trading price (“VWAP”) on the Toronto Stock Exchange (“TSX”) on June 25, 2019. Raymond James and Goldman Sachs have been retained to advise ALEA in this transaction.
ALEA believes that its proposal represents an attractive value proposition for Pure’s Unitholders. ALEA’s proposed purchase price represents premiums of approximately:
- 15% to the closing traded price of the Units on the TSX on June 25, 2019
- 17% to the REIT’s most recent appraisal-based IFRS valuation of US$6.53 per Unit
- 6% to average consensus research analyst Net Asset Value of US$7.19 per Unit
- 4% to average consensus research analyst Target Price of US$7.29per Unit
ALEA has proposed to undertake expedited, limited due diligence and engage with Pure’s Board to negotiate the definitive terms of a consensual transaction that is in the best interests of all stakeholders. ALEA has also offered to deposit in escrow $40 million in cash to secure its reverse break fee obligations.
ALEA’s proposal is not conditioned on financing. ALEA has indicated that it is able to move quickly and effectively to complete this proposed transaction once due diligence is completed.
On June 18, 2019, ALEA submitted to Pure’s Board a written proposal to acquire all of the Units for a cash price of US$7.54 per Unit. ALEA’s proposal expired without a definitive response from Pure’s Board. ALEA has advised Pure’s Board that ALEA’s representatives are prepared to meet immediately with representatives of Pure to discuss final pricing and terms.
About ALEA:
ALEA is a well-established buyer of real estate with a strong track record in the US Sunbelt multi-family market. ALEA, together with its affiliates, has acquired, operated and sold over 150 multifamily communities, representing over 100,000 apartment units valued at over US$9 billion. It currently owns and manages approximately 28,000 units valued at over US$4 billion. The principals of ALEA have worked in both the private and public sectors of multi-family real estate. ALEA has been extremely active in mergers and acquisitions, having completed, among others, the acquisition of Apartment Trust of America, a U.S. apartment REIT, and the sale of approximately US$2 billion of apartment assets to Starwood Capital Group and Milestone Apartments Real Estate Investment Trust.
Contact Information:
Joseph Lubeck
Chief Executive Officer
+1 (561) 408-3442