MF REIT Being Sold

GMH Communities Trust, a Newtown Square, Pa.-based real estate investment trust, is being sold in two parts to two different investors for a total payout of about $9.61 per GMH share. This is about 72% higher than the closing price of GMH stock of $5.59 on Feb. 11. A U.S. subsidiary of the United Kingdom-based Balfour Beatty is buying the multifamily REIT's military housing division for $350 million in cash, resulting in payment of about $4.08 per GMH share and unit, although GMH said the price is subject to change. This part of the sale is not subject to shareholder approval and is expected to close in the second quarter. Once it closes, the REIT's 64 student housing properties, as well as interests in eight joint venture properties, are being acquired by Austin, Texas-based American Campus Communities, a student housing REIT, for a total payment of about $1.4 billion, including the assumption of about $963 million in debt. GMH shareholders will be paid about $5.53 per share in the transaction. ACC has formed a joint venture with Fidelity Real Estate Group and will transfer 15 of the acquired properties to the venture, ACC reported. In addition, KeyBank NA is providing a $200 million term loan for the acquisition. ACC said it sees the acquisition as an opportunity to enter 41 new markets.