Greystar to buy EdR Trust for $4.6 bn, own $10 bn in US market portfolio

Education Realty Trust Inc, an owner of collegiate housing communities, said on Monday it would be acquired by an affiliate of Greystar Real Estate Partners for about $4.6 billion, including debt.

Education Realty shareholders will receive $41.50 per share in cash from Greystar Student Housing Growth and Income Fund.

The deal has an equity value of $3.15 billion, based on Education Realty's shares outstanding as on May 1.

In conjunction with the deal, which is expected to close in the second half of 2018, a joint venture between an affiliate of Blackstone Real Estate Income Trust Inc and a Greystar affiliate will buy a portfolio of off-campus student housing assets.

The company said it will discontinue its regular quarterly dividends as per the agreement.

Education Realty shares have gained nearly 12 percent since June 1 when the Wall Street Journal reported that the company was exploring a sale.

The newly combined Greystar and Education Realty team will own about $10 billion in the portfolio of income-generating real estate concentrated in US markets, the statement added.

BofA Merrill Lynch advised Education Realty on the deal, while Morrison & Foerster LLP and Venable LLP were its legal advisers. J.P. Morgan Securities LLC was financial adviser to Greystar, while Hogan Lovells US LLP and King & Spalding were its legal advisers.