Camden Property Trust and Summit Properties Announ
Houston, October 7--Camden Property Trust and Summit Properties Inc. have executed a definitive merger agreement pursuant to which Summit will be merged with and into a wholly owned subsidiary of Camden.
The total transaction value, including the assumption of Summit debt, is approximately $1.9 billion, or $31.37 per Summit share, based on the closing price of Camden's shares on Oct. 1, 2004.
The 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.
Summit, based in Charlotte, owns about 60 communities with more than 18,200 apartment homes. Most of them are in Washington, D.C., and southeast Florida, two of the strongest apartment markets in the country. Summit also has apartments in Raleigh and Atlanta. Houston-based Camden owns interests in and operates more than 50,000 apartments in Texas, Nevada, Arizona and Florida.
Camden currently expects to form a joint venture and transfer to the venture multifamily properties with an estimated value of $450 million to $500 million. Camden anticipates that it will retain a minority interest in the venture and continue to provide property management services for the properties transferred to the venture. Alternatively, Camden may sell these properties to third party purchasers. Camden will use a portion of the proceeds from these transactions to fund the cash portion of the merger consideration.
