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Starwood to buy Milestone Apartments assets in US$2.85-billion friendly deal
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Original Publication Date: January 18, 2017 11:36PM
Publication Updated: April 26, 2025 9:41PM
TORONTO – Milestone Apartments Real Estate Investment Trust (TSX:MST.UN) has signed a deal to be acquired by an affiliate of Starwood Capital Group in a transaction valued at US$2.85 billion.
The Toronto-based trust’s portfolio includes 78 multi-family residential properties in the U.S. Southeast and Southwest regions, with a total of 24,061 apartment units.
Starwood has agreed to pay US$16.15 per trust unit for Milestone.
Based on the average exchange rate over the past 30 days, the offer is worth C$21.45 per unit — nine per cent above Milestone’s closing price on Wednesday at C$19.66 and 16 per cent above the 30-day volume-weighted average price.
Milestone’ board of trustees is unanimously in favour of the offer, which requires approval by at least two-thirds of the votes cast at a special meeting of unitholders. The deal also requires a simple majority of votes cast by unitholders excluding Milestone chief executive Robert Landin and affiliated entities.
The trust has agreed to pay a termination fee of US$53 million to Starwood and Starwood will pay a reverse break fee of US$100 million to Milestone if the deal is cancelled in certain specified circumstances.
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