Post Properties Looks For Buyer

Post Properties, an Atlanta-based multifamily real estate investment trust, has reported a buyout proposal to acquire the company for $44 to $47 per share in cash. The offer comes from the team of Cadim - a division of Quebec, Canada-based Caisse de depot et placement du Quebec - and Williams Realty, an entity controlled by John A. Williams, the former chairman and CEO of Post Properties. The proposal is subject to due diligence, but not dependent on financing contingencies. "As a result of this review as well as input from several of our largest shareholders, our board has authorized us to explore a possible business combination to enhance potential value for our shareholders," said David P. Stockert, Post's president and CEO. Considering that other offers will be considered Post has not yet determined whether to go with the Cadim/Williams offer. Commenting on this development, JP Morgan Securities' REIT research team said in a report that this shows financing is still available for real estate deals. They value Post's shares at $53 each, assuming a 5.3% capitalization rate.