BRE Properties Inc.
), which is set to merge with
Essex Property Trust Inc.
) during the first quarter of 2014, disclosed a special dividend
of $5.15 per share of common stock to its shareholders. The move
comes as part of its merger agreement and is conditioned upon the
closing of the asset sale.
As per the merger agreement, a notice has been delivered by Essex
to BRE according to which certain interests in assets of BRE and
its subsidiaries need to be sold by BRE and purchased by specific
parties selected by Essex particularly on the business day
earlier than the effective time of the merger.
Based on the amount of proceeds received by BRE in relation to
the assets sale, the company needs to make a distribution of the
proceeds to its stockholders. Therefore, this conditional special
dividend has been authorized by BRE's board and is payable to BRE
stockholders of record as of the close of business on the final
business day prior to the effective time of the merger. Notably,
the cash part of the deal to be paid by Essex to BRE shareholders
for this merger would fall due to this special dividend
As a matter of fact, the merger of BRE with Essex Property would
create the leading public owner of multifamily properties in the
attractive West Coast markets. With a solid management team at
Essex and a significant geographic overlap, we believe that this
combined entity can enjoy a strong property base in the region
and effectively leverage on the attractive market fundamentals,
operating efficiencies and reward shareholders accordingly.
BRE Properties has a Zacks Rank #2 (Buy). Investors interested in
the residential real estate investment trust (REIT) industry may
Associated Estates Realty Corporation
). Both these stocks have the same rank as BRE Properties.
ASSOC ESTATES (AEC): Free Stock Analysis
BRE PROPERTIES (BRE): Free Stock Analysis
ESSEX PPTY TR (ESS): Free Stock Analysis
UDR INC (UDR): Free Stock Analysis Report
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