Greystar Announces Completion of $4.6 Billion EdR Acquisition
September 20, 2018 at 16:01 PM EDT
MEMPHIS, Tenn., Sept. 20, 2018 /PRNewswire/ -- EdR (NYSE: EDR), one of the nation's largest developers, owners and managers of high-quality collegiate housing communities, today announced the completion of the previously disclosed acquisition led by funds managed by an affiliate of Greystar Real Estate Partners. The announcement follows EdR stockholders' vote to approve the merger at a meeting held September 14, 2018. The total transaction value is approximately $4.6 billion.
Pursuant to the transaction, EdR's stockholders are entitled to receive $41.50 per share in cash. As a result of the transaction, EdR's common stock ceased trading on the New York Stock Exchange effective before the market opened today.
"Not only was the sale beneficial to EdR's shareholders, but joining forces with Greystar will also benefit our residents, university partners and employees," said Randy Churchey, EdR's Chief Executive Officer and Chairman of the Board of Directors. "This transaction greatly expands Greystar's U.S. student housing portfolio and opens up even more opportunities for our current and future university partners who are looking at expanding their on-campus housing through Public-Private Partnerships (P3). The integration of EdR's on-campus experience and operating expertise with Greystar's investment platform and access to capital positions us to help even more of America's prestigious universities enhance their campus housing and achieve their student retention and success goals."
"Completing this highly strategic transaction provides us with an institutional-quality student housing platform at a scale that would be very difficult to replicate in the private market," said Bob Faith, the Founder, Chairman and Chief Executive Officer of Greystar. "It also advances our long-term strategy to grow our global student housing footprint, and we look forward to leveraging our proven platform to enhance the company's performance and value. EdR boasts a deep bench of talent and we look forward to welcoming their team into the Greystar family."
EdR's student housing platform will operate under the Greystar brand and retain its leadership team and operational headquarters in Memphis, Tenn.
BofA Merrill Lynch served as exclusive financial advisor, and Morrison & Foerster LLP and Venable LLP served as legal advisors to EdR. J.P. Morgan Securities LLC served as exclusive financial advisor, and Hogan Lovells US LLP and King & Spalding served as legal advisors, to Greystar.
JPMorgan Chase Bank, N.A. provided debt financing for the transaction.
In conjunction with the above transaction, a joint venture between an affiliate of Blackstone Real Estate Income Trust, Inc. ("BREIT") and an affiliate of Greystar acquired a portfolio of 20 of the EdR communities for $1.2 billion. The off-campus communities are located adjacent to top-tier university campuses. The newly combined Greystar/EdR team will continue to manage the assets.
In addition, on September 20, 2018, Education Realty Operating Partnership, L.P. issued notices of redemption to redeem all of its outstanding 4.60% Notes due 2024. It is expected that these notes will be redeemed on October 22, 2018.
Liza Kunkel – Greystar Public Affairs
Adam Pillay – Greystar Investor Relations
Please see our EdR Shareholder Frequently Asked Questions document (FAQs - Greystar® Acquisition of EdR) for more information.
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