Education Realty Trust, an owner of collegiate housing communities, said on Monday it would be acquired by an affiliate of Greystar Real Estate Partners for about $4.6 billion, including debt.
Education Realty shareholders will receive $41.50 per share in cash from Greystar Student Housing Growth and Income Fund. The deal has an equity value of $3.15 billion, based on Education Realty's shares outstanding as on May 1.
In conjunction with the deal, which is expected to close in the second half of 2018, a joint venture between an affiliate of Blackstone Real Estate Income Trust and a Greystar affiliate will buy a portfolio of off-campus student housing assets.
The company said it will discontinue its regular quarterly dividends as per the agreement.
Education Realty shares have gained nearly 12 percent since June 1 when the Wall Street Journal reported that the company was exploring a sale.
The newly combined Greystar and Education Realty team will own about $10 billion in portfolio of income-generating real estate concentrated in U.S. markets, the statement added.
Bank of America/Merrill Lynch advised Education Realty on the deal, while Morrison & Foerster and Venable were its legal advisers. J.P. Morgan Securities was financial adviser to Greystar, while Hogan Lovells US and King & Spalding were its legal advisers.