LAKE PARK, Fla., April 03, 2018 (GLOBE NEWSWIRE) -- Electra America (“Electra”), the owner and operator of multifamily properties in the U.S., announced that is has today extended its offer, previously submitted to the Board of Pure Multi-Family REIT LP (TSXV:RUF.U) (TSXV:RUF.UN) (“Pure”) on March 26, 2018, to acquire 100% of the outstanding Class A Units (“Units”) of Pure for an all-cash price per Unit of US $7.59 (equivalent to CDN $9.79 based on today’s exchange rate) which represented a 24% premium to the Units’ last closing volume-weighted-average trading price (“VWAP”) on the TSX Venture Exchange (“TSXV”) at the time. Electra previously offered to acquire all of the outstanding Units of Pure for an all-cash price on December 12, 2017. Electra’s current offer represents an increased price from its prior offer on December 12, 2017.
Electra America is a well-established buyer of real estate with a strong track record in the US Sunbelt multi-family market. Electra America, together with its affiliates, have acquired, operated and sold over 150 multifamily communities, representing over 40,000 apartment units valued at over US$3 billion.
Electra believes that its proposal represents an attractive value proposition for Pure’s Unitholders. As compared to the Units’ closing price on the TSXV on April 2, 2018, Electra’s proposal represents premiums of approximately:
- 24% to the 30-day VWAP of the Units on the TSXV
- 22% to the closing traded price of the Units on the TSXV
- 16% to the REIT’s most recent appraisal-based IFRS valuation of US$6.53 per Unit
- 12% to average consensus research analyst Net Asset Value of US$6.78 per Unit
- 10% to average consensus research analyst Target Price of US$6.92 per Unit
Electra has proposed to undertake confirmatory due diligence and engage with Pure’s Board to negotiate the definitive terms of a consensual transaction that is in the best interests of all stakeholders.
Vision Capital Corporation, one of Pure’s most significant unitholders through funds Vision manages, has confirmed to Electra in writing that it is supportive of Electra’s offer.
Electra’s offer is not conditioned on financing. Electra has indicated that it is able to move quickly and effectively to complete this proposed transaction once due diligence is completed.
Electra’s March 26 proposal expired without a definitive response from Pure’s Board. Given the value inherent in its proposal for Pure’s Unitholders, Electra has now extended the outside date for a definitive response to its extended offer to April 6, 2018.
About Electra America:
Electra America is a well-established buyer of real estate with a strong track record in the US Sunbelt multi-family market. Electra America, together with its affiliates, have acquired, operated and sold over 150 multifamily communities, representing over 40,000 apartment units valued at over US$3 billion. The principals of Electra America have worked in both the private and public sectors of multi-family real estate. Electra America currently manages 21,000 units valued at over US$2 billion in enterprise value. Electra America has been extremely active in mergers and acquisitions, having completed, among others, the acquisition of Apartment Trust of America, a U.S. apartment REIT, and the sale of approximately US$2 billion of apartment assets to Starwood Capital Group and Milestone Apartments Real Estate Investment Trust.
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Source: Electra America