Merry Land, Cornerstone to Merge

Cornerstone Realty Income Trust Inc., Richmond, Va., and Merry Land Properties Inc., Augusta, Ga., have entered into an agreement valued at approximately $136 million under which Merry Land will merge into a wholly owned subsidiary of Cornerstone.The total consideration consists of Cornerstone stock valued at about $42 million and the assumption by Cornerstone of Merry Land debt totaling about $94 million, the companies said. The proposed transaction will be structured as a tax-free merger and is subject to approval by Merry Land's shareholders. The merger will "significantly enhance Cornerstone's Southern presence," adding direct ownership of nine properties in Charleston, S.C., and Savannah, Ga., Cornerstone said. In conjunction with the merger, Cornerstone said it will enter into agreements with a newly formed private company, Merry Land & Investment Co. LLC, for the development of three additional class A communities in Savannah and Charleston. Cornerstone, a real estate investment trust, can be found online at http://www.cornerstonereit.com, and Merry Land can be found at http://www.merryland.com.