Jan 19, 2017 News Hour Correspondent -

Starwood to buy Canada’s Milestone Apartments Real Estate Investment Trust in a deal valued at about $2.85 billion

News Hour:

A unit of private investment firm Starwood Capital Group said it would buy Canada’s Milestone Apartments Real Estate Investment Trust in a deal valued at about $2.85 billion.

Starwood Capital will pay $16.15 in cash per Milestone Apartments unit, the REIT said. Based on current exchange rates the offer equates to about C$21.47 per Milestone Apartments unit, which is a premium of 9.2 percent to the unit’s close of C$19.66 on Wednesday, reports Reuters.

Milestone Apartments’ portfolio consists of 78 multifamily residential properties, comprising 24,061 apartment units, located throughout the Southeast and Southwest United States. The transaction implies an average price of about $120,000 per apartment unit, the REIT said.

Barry Sternlicht, Chairman and CEO of Starwood Capital Group, speaks at the 2014 Milken Institute Global Conference in Beverly Hills, California

Milestone’s legal advisers are Goodmans Llp and Vinson & Elkins Llp, while Starwood’s are Stikeman Elliott LLP and Kirkland & Ellis Llp. BMO Capital Markets is Milestone’s financial adviser.