American Campus Communities acquires GMH Communities Trust student housing division

By Lisa Kerner

Charlotte, N.C., June 11 - American Campus Communities, Inc. completed its acquisition of GMH Communities Trust, increasing its total market capitalization to $2.5 billion from $1.3 billion.

In February, GMH agreed to sell its military and student housing divisions in two separate transactions. Balfour Beatty plc was to acquire GMH's military housing division for $350 million in cash, it was previously reported.

The transaction with American Campus related solely to GMH's student housing business, an American Campus news release said.

American Campus said each common share of GMH and each unit of GMH's operating partnership has been converted into the right to receive 0.07642 of a share of American Campus common stock and $3.36 per share in cash.

A special distribution of $1.71 will also be paid to GMH shareholders on Thursday. The record date for the distribution is June 10.

In conjunction with the closing, American Campus announced a joint venture with Fidelity Real Estate Group, on behalf of an institutional fund, and transferred 15 GMH student housing properties to the venture with an estimated value of $326 million.

GMH's common shares were delisted from the New York Stock Exchange at the close of business on Wednesday.

Joseph M. Macchione, former GMH executive vice president and general counsel, joined the American Campus board.

Based in Austin, Texas, American Campus is a real estate investment trust specializing in the acquisition, development and management of student housing properties in the United States.

GMH is a publicly traded REIT and specialty housing company based in Newtown Square, Pa.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.