Apple REIT Six OKs merger

Latest nontraded property trust to announce liquidity event

May 12, 2013 @ 12:01 am

By Bruce Kelly

+ Zoom

Apple REIT Six Inc. said last Thursday that its shareholders had approved a definitive merger agreement with BRE Select Hotels Corp., an affiliate of Blackstone Real Estate Partners VII, which is expected to close tomorrow.

Apple REIT Six, which has $741 million in assets, originally was sold to investors between 2004 and 2006, with most shares priced at $11. Each holder of Apple REIT Six will receive $11.10 in value, consisting of $9.20 in cash and $1.90 a share in preferred stock of the Blackstone affiliate, BRE Select Hotels Corp.

Investors, however, won't have full liquidity immediately. They will have an option to redeem the new shares after seven and a half years; the shares have a dividend rate of 7%.

The total transaction value of the Blackstone deal is $1.1 billion.

As reported, six nontraded real estate investment trusts are close to or mulling a listing or a merger, with the first, Chambers Street Properties, planning to list this month on the New York Stock Exchange.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Pershing's Dolly: Lessons in leadership

Women are holding top leadership roles as CEOs of some of the industry’s top firms, but it’s still the exception rather than the norm. Lisa Dolly of Pershing talks about how to balance it all.

Latest news & opinion

Jay Clayton says SEC, DOL can give market 'clarity' on fiduciary rule

Chief regulator is confident two agencies could reach 'common ground' on an investment advice standard across all accounts.

Vanguard winning at bond inflows, too

But iShares is strong competition.

Sen. Gary Peters brings broker background to work every day on Capitol Hill

Michigan Democrat resists ripping up DOL fiduciary rule but would be open to some changes.

DOL fiduciary rule causing DC-plan record keepers to change business with insurance agents

Principal has communicated that independent agents must change their business models to keep receiving compensation.

DOL fiduciary rule opponents want to push implementation back until 2019

ICI, Chamber of Commerce among groups asking for delay, while Democratic lawmakers call on DOL to keep to its earlier planned schedule of Jan. 1, 2018.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print