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Boston Capital REIT Agrees to Be Acquired
Published: November 05, 2007
By Kelly Sheehan, Online News Editor
Boston—Boston Capital Real Estate Investment Trust (REIT) Inc. recently announced that it has entered into a definitive agreement in which an affiliate of BPG Properties Ltd. will acquire the company in an all-cash transaction valued at $13.30 per share.
The merger has been unanimously approved by the company’s board of directors. Completion of the merger, expected to occur by the end of the first quarter of 2008, is subject to approval by the company’s common shareholders, as well as to certain other customary closing conditions.
The purchase price represents a 33-percent premium over the company’s original $10.00 per share offering price. In addition to the merger consideration, the agreement permits Boston Capital REIT to continue to pay regular monthly distributions at a rate of $0.00164384 per share through the closing of the merger with a pro-rated dividend for the month in which the transaction closes. This monthly distribution is equivalent to an annual rate of return of six percent, assuming the share was purchased for $10.000.
Wachovia Securities acted as the financial advisor to Boston Capital REIT, while Goodwin Procter LLP provided legal advice. Pepper Hamilton LLP acted as legal counsel to BPG.
Boston Capital REIT operates as a REIT for federal income tax purposes. Through its subsidiaries and joint ventures, Boston Capital REIT owns interests in a portfolio of 11 apartment properties, consisting of 3,098 units and comprising about 2.7 million square feet of residential space in Washington, Oregon, Utah, Florida and Texas.
BPG Properties Ltd. is a private equity real estate fund manager based in the Philadelphia area. The company’s portfolio consists of more than 25,000 apartment units in more than 100 communities throughout the country as well as over 20 million square feet of student housing, office, retail and industrial properties. Since 2003, BPG has completed seven significant portfolio transactions totaling 70 communities and more than 14,000 apartments.
