Dream Residential Real Estate Investment Trust (TSX: DRR.U, DRR.UN) is being acquired by an affiliate of Morgan Properties LP in an all-cash transaction valued at approximately $354 million.
Toronto-headquartered Dream Residential REIT owns a portfolio of garden-style multi-residential properties, primarily located in three markets across the US Sunbelt and Midwest regions. Morgan Properties is a real estate investment and management company headquartered in Conshohocken, Pennsylvania, that owns and manages a multifamily portfolio comprising over 100,000 units across more than 360 communities in 22 states.
Following the conclusion of the acquisition, Dream Residential REIT will cease to be publicly traded. Dream Residential REIT will suspend its normal monthly distributions following the payment on Nov. 15 of its October distribution. If the transaction has not closed by Nov. 18, and the conditions to closing of the transaction have otherwise been satisfied or waived, the REIT may pay one additional monthly distribution.
“The Dream Residential REIT portfolio exemplifies the type of investment opportunity Morgan Properties excels in – leveraging our strong balance sheet, proven ability to deliver execution certainty, and deep expertise in acquiring large portfolio across numerous markets,” said Jonathan and Jason Morgan, co-Presidents of Morgan Properties. “Our team looks forward to welcoming these new communities, enhancing the physical assets, and providing best-in-class customer service for the residents.”
“Following a comprehensive review, the board has determined that the transaction is in the best interest of the REIT,” said Vicky Schiff, chairwoman of Dream Residential REIT’s board of trustees. “We are pleased with today’s announcement which will bring a successful conclusion to the REIT’s strategic review. The board is unanimously recommending that unitholders vote in favor of the transaction.”
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