Equity Residential (EQR) to Sell Real Estate Portfolio in $1.5B Deal with Goldman, Greystar (GS)
- Top 10 News for 6/27 - 7/1: Markets Rebound Following Brexit Fall; US Banks Gain on Stress Test Results; Tesla Under Fire Following Accident
- Wall St. ends higher for fourth straight day
- Harley-Davidson (HOG) Says Subject of Various Rumors; Won't Comment on Latest Speculation
- NHTSA Probes Tesla (TSLA) After Fatal Model S Autopilot Crash
- Caution: Wall Street Rumor Mill in Overdrive
Equity Residential (NYSE: EQR) announced that the company has entered into an agreement to sell a portfolio of assets to a joint venture of the Real Estate Principal Investment Area of Goldman, Sachs & Co. (NYSE: GS) and Greystar Real Estate Partners LLC for $1.5 billion. The transaction values the 27 properties at approximately $187,000 per apartment unit and a capitalization rate in the mid to high 5% range. Per the agreement, Equity Residential has granted the buyer the right to exclude up to 8% of the value of these assets from their purchase. As a result, Goldman Sachs and Greystar have the contractual right to acquire all of the assets for $1.5 billion but are obligated to purchase not less than $1.38 billion of assets. The buyers have deposited $150 million in escrow and have waived their due diligence contingency. The transaction is expected to be completed in two separate closings, both of which will occur in the first quarter of 2013.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- BMW, Intel (INTC), Mobileye (MBLY) Plan to Bring Fully Autonomous Driving to Streets by 2021
- GM (GM) U.S. Light-Vehicle Sales Fell More-than-Expected in June 2016
- 21Vianet Group (VNET) Announces Buyer Group Withdraws Going Private Proposal
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Hot M&A, Market Check
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!