Monogram Residential Trust (MORE) announced that it has entered into a definitive merger agreement to be acquired by a newly formed perpetual life fund, Greystar Growth and Income Fund, in a transaction valued at approximately $3B, including debt to be assumed or refinanced. Under the terms of the merger agreement, which was unanimously approved by board, Monogram's stockholders will receive $12.00 per share in cash.

This represents a premium of approximately 22% to Monogram's unaffected closing stock price on July 3. The $3B aggregate transaction value includes Monogram's share of its two institutional co-investment joint ventures with PGGM and NPS. The PGGM joint venture will be restructured, and the joint venture interests held by NPS will be purchased by Greystar pursuant to a separate assignable purchase and sale agreement for approximately $0.5B, subject to certain adjustments at closing, including payment of the NPS joint venture's share of debt to be assumed or refinanced in connection with the transaction.

The transaction is expected to close in the second half of 2017 and is subject to approval by Monogram's stockholders and other customary closing conditions. The transaction is not contingent on receipt of financing by Greystar.