MID AMERICA APARTMENT COMMUNITIES INC. acquired Colonial Properties Trust for approximately $8.6 billion (combined total market capitalization); ~$5.1 billion pro forma equity valuation, a transaction completed in October 2013, structured as all stock (each Colonial common share converted into 0.36 newly issued MAA common shares; intended tax-free; UPREIT). The deal was a Merger.
Colonial Properties Trust operates in Multifamily / apartment REIT (Sunbelt), is based in Birmingham, AL (Sunbelt large and secondary markets). Colonial Properties Trust (NYSE: CLP), a Birmingham, Alabama-based multifamily REIT, merged with and into MAA, with MAA the surviving entity. The all-stock combination created a Sunbelt-focused multifamily REIT owning approximately 85,000 apartment units across 285 properties — at the time the second-largest publicly traded REIT portfolio of owned apartments.
The combination of MAA and Colonial Properties Trust will provide an enhanced competitive advantage across the Sunbelt region. The scale of the combined company will support accelerated growth and deployment of capital across our high-growth Sunbelt markets driving superior value creation opportunity for our shareholders.
Brought together two highly complementary Sunbelt multifamily portfolios, adding scale (combined ~85,000 units across 285 properties) and strategic diversity across large and secondary high-growth markets. Higher margins from operating synergies, accelerated capital deployment, and enhanced competitive advantage across the Sunbelt region. Colonial merged with and into MAA (surviving entity), structured as an UPREIT; MAA board expanded to 12 with 5 directors nominated by Colonial. H. Eric Bolton, Jr. served as CEO and Chairman of the combined company.
The combination of MAA and Colonial Properties Trust will provide an enhanced competitive advantage across the Sunbelt region. The scale of the combined company will support accelerated growth and deployment of capital across our high-growth Sunbelt markets driving superior value creation opportunity for our shareholders. In addition, through capitalizing on the strengths gained from the combination of the two platforms, we will enhance our ability to serve residents across the region, drive higher margins as a result of synergies and advantages generated by the merger, and enhance career opportunities for our associates.H. Eric Bolton, Jr., CEO, MAA
This is a combination that makes a lot of sense for the constituents of both Colonial Properties Trust and MAA. Our two companies have a shared vision for success that will only be enhanced by coming together through this merger transaction. We are excited for the future of our combined company.Thomas H. Lowder, CEO, Colonial Properties Trust
Advisory firms were not disclosed for this transaction.