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Starwood to buy Milestone Apartments REIT in $2.9 bln deal: Reuters

A unit of U.S. private investment firm Starwood Capital Group said it would buy Canada’s Milestone Apartments Real Estate Investment Trust (TSX: MST.UN) in a deal valued at about US$2.85 billion.

Starwood Capital will pay US$16.15 in cash per Milestone Apartments unit, the REIT said.

Based on current exchange rates the offer equates to about $21.47 per Milestone Apartments unit, which is a premium of 9.2 percent to the unit’s close of $19.66 on Wednesday.

Milestone Apartments’ portfolio consists of 78 multi-family residential properties, comprising 24,061 apartment units, located throughout the Southeast and Southwest United States.

The transaction implies an average price of about US$120,000 per apartment unit, the Toronto-based REIT said.

Milestone’s legal advisers are Goodmans LLP and Vinson & Elkins LLP, while Starwood’s are Stikeman Elliott LLP and Kirkland & Ellis LLP.

BMO Capital Markets is Milestone’s financial adviser.

(Reporting by John Benny in Bengaluru; Editing by Savio D’Souza)

Photo of Barry Sternlicht, chairman and CEO of Starwood Capital Group, courtesy of Reuters/Lucy Nicholson