VOL. 131 | NO. 162 | Monday, August 15, 2016
MAA to Acquire Post Properties for $4 Billion
By Madeline Faber
Memphis-based MAA will purchase Atlanta-based Post Properties Inc. for $4 billion, creating the largest publicly traded real estate investment trust by number of owned apartments. The combined company will have an expected value of $17 billion with an equity market capitalization of $12 billion.
The merger will create a combined asset base of nearly 105,000 multifamily units across 317 properties. According to a release provided by MAA and Post Properties, the company will focus on large and secondary markets within the Sunbelt region of the U.S. The 10 largest markets, by unit count, will be Atlanta, Ga.; Dallas; Austin, Texas; Charlotte, N.C.; Raleigh, N.C.; Orlando, Fla.; Tampa, Fla.; Fort Worth, Texas; Houston, Texas; and Washington, D.C.
Each share of Post Properties common stock will be converted into 0.7 shares of newly issued MAA common stock. Following the merger, MAA equity holders will hold 67.7 percent of the new company, with former Post equity holders holding 32.3 percent. The merger is expected to close during the fourth quarter of 2016.
"The combination of MAA and Post will establish the leading apartment real estate platform focused on the high-growth Sunbelt region of the country with significant competitive advantages to drive superior value for our shareholders, residents and employees,” said Eric Bolton, MAA chairman and CEO, in a statement. “The combined company will capture a broader market and submarket footprint, with improved rental price-point diversification that will support an enhanced level of performance over the full real estate cycle.”