COLUMBIA, S.C. AND HOUSTON — AmREIT Inc. (NYSE: AMRE), a retail and mixed-use REIT based in Houston, has entered into a definitive agreement with Edens Investment Trust (EDENS) under which EDENS will acquire all outstanding shares of common stock of AmREIT for $26.55 per share in an all-cash transaction valued at approximately $763 million. AmREIT’s board of directors has unanimously approved the transaction.
EDENS is a national retail real estate owner and developer with a 48-year track record. The Columbia-based company owns a $4.2 billion portfolio of urban retail centers.
“This opportunity is an important step in our strategic plan to complement, enhance and expand our platform and existing portfolio of leading urban retail centers,” says Terry Brown, chairman and CEO of EDENS.
Completion of the transaction, which is currently expected to occur in the first quarter of 2015, is contingent upon the approval of AmREIT’s stockholders, who will vote on the transaction at a special meeting on a date to be announced.
“This is an outstanding outcome for our stockholders, who will receive in cash a premium value for their shares reflecting the irreplaceable characteristics of our portfolio of properties,” says Kerr Taylor, chairman and CEO of AmREIT.
Jefferies LLC acted as financial advisor to AmREIT, and Morrison & Foerster LLP and Venable LLP acted as AmREIT’s legal advisors. Goldman, Sachs & Co. acted as financial advisor to EDENS, and King & Spalding LLP acted as legal advisor to EDENS.
AmREIT specializes in the acquisition, operation and redevelopment of retail and mixed-use properties located in affluent, urban submarkets. The company’s existing properties are concentrated in Houston, Dallas, San Antonio, Austin and Atlanta. The company’s portfolio was 95.2 percent leased as of June 30, 2014, and its top five tenants include Kroger, Landry’s, CVS/pharmacy, H-E-B and Safeway.
AmREIT’s stock price closed Friday, Oct. 31 at $24.63 per share, up from $17.38 per share this time last year.
EDENS develops, owns and operates retail centers in primary markets throughout the East Coast. The company has a portfolio of 100 retail centers as of this writing.
— John Nelson