US real estate firm BRE in talks for USD4.5 billion acquisition by Essex

December 10
2:11 AM 2013

Real estate investment trust (REIT) BRE Properties Inc is in talks for an acquisition by Essex Property Trust Inc. The potential deal is valued at USD4.5 billion in combined cash and stock. The transaction would create the biggest publicly traded apartment landlord in the west coast of the US, according to SF Gate.

In a statement, BRE said Essex has made a nonbinding offer of USD12.33 in cash and 0.2971 shares per Essex share. The two parties are exclusively negotiating the deal, the report said. The offer could put the REIT's value at around USD58.08 per Essex share based on the last closing price of Essex, the report detailed.

Purchasing BRE would expand the California portfolio of Essex. Of special interest is the San Francisco Bay area, which is one of the most popular rental markets in the US, the report stated.

BRE said it has sought financial advice from Wells Fargo & Co on the deal. The firm also sought legal counsel from Latham & Watkins LLP. Richard Anderson, BMO Capital Markets Corp analyst, said Essex is the most logical buyer for the BRE, SF Gate reported.

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