Plotted by close date where disclosed, otherwise announcement. Select any marker to jump to the deal entry.
Three patterns run through Camden Property Trust's acquisitions — what it looks for, how it pays, and how it folds in what it buys.
3 acquisitions — each with the deal value, financing structure, target revenue, and executive commentary where disclosed.
Camden combined with Summit Properties, a publicly traded apartment REIT, merging Summit into a wholly owned Camden subsidiary. The transaction extended Camden's platform into Summit's core Mid-Atlantic and Southeast markets and created what the companies described as the fifth-largest publicly traded U.S. multifamily company. Camden also indicated it would form a joint venture holding roughly $450 million to $500 million of multifamily properties, retaining a minority interest and management, to help fund the cash portion of the merger. Total transaction value of approximately $1.9 billion including assumed Summit debt, or about $31.37 per Summit share based on Camden's October 1, 2004 closing price. Summit stockholders could elect $31.20 in cash or 0.6687 of a Camden common share per share, with aggregate cash reallocated to roughly $434.4 million; at closing Camden issued about 11.8 million common shares and paid approximately $436.3 million in cash to former Summit stockholders.
This strategic merger takes both Camden and Summit to the next level in size and potential. This merger creates the fifth largest multifamily public company in the U.S. with a $5.7 billion total market capitalization and a $2.9 billion equity market cap.Richard J. Campo — Chairman and CEO, Camden Property Trust
This is good news for our stockholders and our Associates. Our stockholders will receive a premium over the current share price as well as a 26% increase in annual dividends for those electing Camden shares in the merger.Steve LeBlanc — CEO, Summit Properties
Camden indicated it would contribute roughly $450 million to $500 million of multifamily properties into a joint venture (retaining a minority interest and continuing to manage them) or sell them to third parties, using proceeds to fund the cash portion of the merger consideration.
Camden acquired Oasis Residential, a Las Vegas-based multifamily REIT that operated and developed apartment communities in Las Vegas, Denver and Southern California, in an all-stock merger. As of December 31, 1997 Oasis owned interests in 52 completed multifamily properties plus one under construction, giving Camden an established Western U.S. footprint. All-stock merger; transaction value not separately disclosed. Each Oasis common share converted into 0.759 of a Camden common share and each Oasis Cumulative Convertible Series A Preferred share converted into one comparable Camden Series A preferred share. Camden issued 12,391,796 common shares and 4,165,000 Cumulative Convertible Series A Preferred shares to former Oasis holders. Oasis reported total assets of about $846.5 million at December 31, 1997.
Before the end of the second quarter of 1998, Camden spun off approximately 5,000 Las Vegas apartment units into a new private entity in which Camden retained a minority interest and continued to provide property-management services.
Camden combined with Paragon Group, a publicly traded apartment REIT, merging Paragon into a wholly owned Camden subsidiary in an all-stock transaction. The deal roughly doubled Camden's unit count to about 36,199 apartment units and made the combined company, at the time, the fourth-largest apartment REIT, with the combined entity headquartered in Houston. All-stock, tax-free merger accounted for as a purchase; transaction value not separately disclosed. Each Paragon common share was exchanged for 0.64 of a Camden common share, an exchange ratio set off Camden's $27.75 and Paragon's $17.75 closing prices on December 4, 1996. The combination united Paragon's interest in about 16,810 apartment units with Camden's 19,389, creating a company with roughly 36,199 units and total assets in excess of $1.25 billion.
The multifamily sector is undergoing significant consolidation and the larger, better diversified companies should have access to a lower cost of capital which will lead to increased shareholder value. After carefully reviewing all strategic alternatives, Paragon's management believes that a merger with Camden will maximize long-term shareholder value.William Cooper — Paragon Group (who joined Camden's Board of Trust Managers)