August 12, 2019
Denver-based UDR, Inc. and MetLife Investment Management are cutting a $1.76-billion asset swap deal. After accounting for the assumption of in-place debt totaling $540 million, UDR’s net cash outflow to complete the swap is expected to be roughly $105 million. The transaction is expected to close during Q4.
The deal includes:
– Acquisition of the roughly 50% interest not previously owned in 10 UDR/MetLife Investment Management Joint Venture operating communities, one community under development and four accretive development land sites, valued at $1.1 billion, and,
– Divesting its roughly 50% ownership interest in five UDR/MetLife Investment Management Joint Venture communities valued at $645 million to MetLife Investment Management.
UDR’s Tom Toomey says the deal brings hiqh-quality assets into the portfolio, and simplifies the UDR/MetLife Investment Management JV structure. He notes, “The acquired communities are primarily located in markets targeted for expansion, are immediately accretive to our earnings, have operational upside and improve the diversification of our portfolio.”
*Pictured UDR’s Strata, San Diego, CA
For comments, questions or concerns, please contact Dennis Kaiser