MAA Close To Buying Post Properties For $4 Bln: WSJ Reports

(RTTNews) - Real estate investment trust Mid-America Apartment Communities Inc. (MAA) is close to buying a peer Post Properties Inc. (PPS) for about $4 billion amid the increasing rental demand, the Wall Street Journal reported citing people familiar with the matter.

Post Properties shareholders may get 0.71 share of new MAA stock for each share they own in a deal that could be announced Monday.

Following a deal, current MAA equity investors are likely to own about 68% of the combined company, while Post shareholders would own the rest. The tax-deferred transaction is expected to close in the fourth quarter, reports said.

MAA owns or has stakes in more than 80,000 apartments in 15 states, while Post, an operator of upscale multifamily properties, has more than 22,000 apartment units in its portfolio.

The merger, if concluded, is expected to create the largest multifamily REIT by number of units, with about 105,000 across 317 properties. The combined firm would have exposure to the fast-growing Sunbelt region, in markets including Atlanta, Dallas, Houston and Washington, DC.

As per WSJ, the deal would give MAA a portfolio of higher-yielding properties as average monthly rent per unit for Post is $1,483, compared with $1,031 for MAA.

MAA's Chief Executive Eric Bolton Jr. would reportedly become the CEO of the combined company, and MAA name and its corporate headquarters in Memphis will be retained.