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:
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.”
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.
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