Campus Crest to be bought by Harrison Street for $1.9 bln: Reuters

Campus Crest Communities Inc, a student housing real estate investment trust, said it agreed to be bought by privately held Harrison Street Real Estate Capital LLC for US$1.9 billion, including debt.

The deal, valued at US$7.03 per share, includes US$6.90 in cash and net proceeds from the company’s sale of its evo Montréal joint venture estimated to be 13 cents per share, the company said on Friday.

The news comes more than five months after the company, which had been trying to sell itself, hired consulting firm Alvarez & Marsal to help in re-positioning and appointed two of the consulting firm’s executives as interim chief executive and chief financial officer.

Campus Crest said the final deal value would be determined only after Montréal sale, which is expected to occur before October 30.

If the Montréal sale does not occur prior to the closing of the merger with Harrison, Campus Crest said shareholders will receive about US$6.23 per share in cash and one non-transferable contingent value right per share.

The deal, which has been approved by both the boards, is expected to close during the first quarter of 2016.

Moelis & Company LLC are financially advising Campus Crest and Kilpatrick Townsend & Stockton LLP is its legal adviser.

Raymond James and Associates is the financial adviser to Harrison Street and DLA Piper LLP is its legal adviser.

Campus Crest’s shares closed at US$5.68 on the New York Stock Exchange on Friday.

(Reporting by Mansi Goenka in Bengaluru; Editing by Diane Craft and Leslie Adler)

Photo courtesy of Campus Crest Communities Inc