Prime Property Fund to Buy AMLI

Prime Property Fund, a real estate fund managed by Morgan Stanley Real Estate, New York, is acquiring AMLI Residential Properties Trust for about $2.1 billion in an all-cash transaction that will take the REIT out of the publicly traded real estate arena.The management of the Chicago-based real estate investment trust will continue in their roles after the acquisition closes, Prime reported. Prime will acquire all of AMLI's common shares and operating partnership units for $37.75 per share/unit in cash. This represents a 20.7% premium over AMLI's closing price of $31.27 on Oct. 21. The total merger consideration also includes AMLI's debt and preferred securities. "Multifamily is attractive because of its volatility and higher risk-adjusted returns relative to other property types," said Dave Hardman, Morgan Stanley's head of U.S. real estate investing. "AMLI represents an opportunity to acquire a large portfolio of high-quality multifamily assets, an outstanding multifamily management team and organization, strong development capabilities, and a recognized brand name in the sector."