Breaking News: Equity Residential to Pick up $1.3B, 26.5% Ownership in Archstone
- Dec 05, 2011
Check back with Commercial Property Executive for more information as this story develops.
December 5, 2011
By Nicholas Ziegler, News Editor
In a huge move for the Sam Zell-helmed Equity Residential, the firm has entered into a contract for a 26.5 percent ownership stake in Archstone, a privately held owner, operator and developer of multi-family apartment properties. Equity paid $1.33 billion in cash.
While the contract is not yet finalized, the ownership interests at stake include one half of the collective interests of currently owned by Bank of America and Barclays Bank P.L.C. Were the deal to close, Equity would hold only a minority interest, without the ability to affect decisions on behalf of Archstone.
“The Archstone and Equity Residential portfolios are highly complementary with concentrations in the same markets and assets of similar quality,” David Neithercut, Equity’s president & CEO, said. “In addition, since we believe that none of the current owners of Archstone is likely to be a long term owner, acquiring this position allows us a role in determining, and perhaps even expediting, the ultimate outcome regarding Archstone.”
Morgan Stanley & Co. L.L.C. served as Equity’s financial advisor and Hogan Lovells as its legal advisor on this transaction. BofA Merrill Lynch and Barclays Capital served as sell-side financial advisors on this transaction. Kaye Scholer served as legal advisor to Bank of America and Simpson Thacher & Bartlett served as legal advisor to Barclays Bank PLC.