Published on August 15th, 2016 |0
Post Properties is being acquired by Mid-American Apartment Communities
The acquisition brings together two multifamily portfolios totaling approximately 105,000 multifamily units in 317 properties, several of which are located in the Buckhead community of the city of Atlanta.
The combined company plans to focus on urban and suburban locations in large and secondary markets within the Sunbelt region. The combined company’s 10 largest markets by unit count will be Atlanta; Dallas, Fort Worth, Austin and Houston, Texas; Charlotte and Raleigh, N.C.; Orlando and Tampa, Fla.; and Washington, DC.
MAA is a self-administered, self-managed REIT that owns 80,846 apartment units throughout the Southeast and Southwest regions. Post Properties is a REIT that has interests in 24,162 apartment units in 61 communities.
The company will retain the MAA name and ticker symbol once the merger is complete. The combined company’s corporate headquarters will be located in Memphis. The combined company will also maintain a significant presence in Dallas and Post’s headquarters of Atlanta.
“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,” said H. Eric Bolton Jr., chairman and CEO of MAA, in a statement.
“This merger redefines the combined company in terms of product, capability and capacity for consistent growth,” said David P. Stockert, Post’s CEO and president, in a statement.
MAA’s Bolton will serve as CEO and chairman of the combined company. The company will retain the MAA name and will trade under the ticker symbol MAA. MAA’s board will be increased to 13, of which three directors will be designated by Post from its existing board.
Each share of Post common stock will be converted into 0.71 shares of newly issued MAA common stock, per the agreement. Former MAA equity holders will maintain about 67.7 percent of the combined company’s equity, while former Post equity holders will hold the remaining 32.3 percent on a pro-forma basis.
The combined company is expected to have a pro-forma equity market capitalization of about $12 billion, as well as a total market capitalization of about $17 billion.
The merger is subject to customary closing conditions, including approval by MAA and Post shareholders. Both boards of directors have unanimously approved the merger. The parties currently expect the transaction to close during the fourth quarter of 2016.