American Landmark/Electra America Again Calls on Pure Multi-Family REIT to Negotiate

LAKE PARK, Fla., July 08, 2019 (GLOBE NEWSWIRE) -- With Pure Multi-Family REIT LP (TO:RUF.U) (TO:RUF.UN) (“Pure”) still having failed to substantively respond to a proposal by American Landmark/Electra America (“ALEA”), the owner and operator of multifamily properties in the U.S., to acquire 100% of the outstanding Class A Units (“Units”) of Pure for an all-cash price per Unit of US$7.61 (equivalent to CDN $10.03 based on the June 25, 2019 exchange rate), ALEA has today delivered the following letter to Robert W. King, Pure’s Chairman of the Board of Directors:

“While the June 26, 2019 press release by Pure Multi-Family REIT LP (“Pure”) indicates that its letter of intent with a so-called “arm's length third party” permits either party to terminate discussions at any time, it did not indicate when the so-called “exclusivity period” ends by its terms, nor did Pure undertake to terminate discussions with such party to enable Pure to negotiate on a level playing field with us. The implication is that Pure is therefore continuing to negotiate a transaction with this party on what may be inferior terms to those to which ALEA might otherwise agree.

In consideration of the fact that we first submitted a proposal to Pure’s Board of Directors on June 18th of this year without having received any substantive reply, we call on Pure and its Board of Directors to publicly confirm:

  • The date on which the “exclusivity period” with the so-called “arm’s length third party” terminates by its terms;
  • That if the so-called “arm’s length third party” is unwilling to allow Pure to immediately begin negotiations with ALEA, Pure will terminate further discussions with such party until expiration of the exclusivity period; and
  • That Pure will not enter into any binding agreement with the so-called “arm’s length third party”, including any extension of the “exclusivity period”, that would potentially give such party an undue advantage in the bidding process.

As we indicated in our June 27th letter, we are prepared to enter into negotiations with Pure and its advisors on a non-exclusive basis, with limited due diligence and on substantially the same terms as contemplated by the Arrangement Agreement negotiated between our respective representatives last year. We have proposed an all-cash transaction at $7.61 per Unit which represented a 15% premium to the market price of the Units prior to our June 26th release and a 17% premium to the most recent appraisal-based IFRS valuation for the Units. We therefore believe that our proposal continues to represent a compelling proposition for Pure and its unitholders.

We and our representatives are available to meet with you and Pure’s representatives at your earliest convenience.”

About ALEA:

ALEA is a well-established buyer of real estate with a strong track record in the US Sunbelt multi-family market. ALEA, together with its affiliates, has acquired, operated and sold over 150 multifamily communities, representing over 100,000 apartment units valued at over US$9 billion. It currently owns and manages approximately 28,000 units valued at over US$4 billion. The principals of ALEA have worked in both the private and public sectors of multi-family real estate. ALEA has been extremely active in mergers and acquisitions, having completed, among others, the acquisition of Apartment Trust of America, a U.S. apartment REIT, and the sale of approximately US$2 billion of apartment assets to Starwood Capital Group and Milestone Apartments Real Estate Investment Trust.

Contact Information:
Joseph Lubeck
Chief Executive Officer
+1 (561) 408-3442