Starwood Capital Raises Bet Against Sam Zell To Buy Monmouth Property – Commercial Observer


Barry Sternlichtfrom Starwood Capital Group confirmed that it was for an unsolicited takeover offer for an investment fund of industrial real estate Monmouth Real Estate Investment Corporation and increased its offer, hoping to thwart REIT’s earlier acquisition plans Sam Zellfrom Commonwealth of shares

Starwood raised its all-money offer to sell Monmouth from $ 18.70 a share to $ 18.88, with Monmouth still in need of a $ 62.2 million payout for Zell’s breakup. Wednesday morning

“Starwood Capital urges Monmouth’s board of directors to immediately declare Starwood Capital’s offer as the best offer under the terms of the existing merger agreement with [Equity] and take immediate action to complete the deal with Starwood Capital, ”Starwood said in a statement. “Starwood Capital has provided Monmouth with a merger agreement that Starwood Capital is ready to sign immediately.”

An Equity spokesperson did not immediately respond to a request for comment. A Monmouth spokesman pointed to a press release in which Starwood first filed a takeover bid, which said the company was “evaluating” the offer and “did not decide what action to take.”

The New Jersey-based Monmouth portfolio of 24.5 million square feet, spread across 120 properties in 31 states, will give any company that chooses a solid foothold in the industrial market. red-hot during the coronavirus pandemic, thanks to the boom in online shopping.

In May, Equity Commonwealth announced its agreement to buy 65 percent of industrial REIT shares in a stock deal worth about $ 3.4 billion, which was due to close in the second half of this year.

The deal called on Monmouth investors to receive 0.67 Equity shares for each Monmouth share they hold, which is currently trading at around $ 19 a share.

However, Sternlicht thwarted Zell’s plans and, earlier this month, submitted his own proposal for a full takeover of Monmouth for money, which was good news for some of Monmouth shareholders who had previously called Zell’s proposal “completely inadequate” Bloomberg reports.

Update: This story has been updated to clarify Starwood’s new claim.

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