UDR and Apollo Launch $2 Billion Multifamily Joint Venture
UDR and Apollo Global Management formed a $2 billion joint venture to own 19 multifamily communities totaling 7,059 units.
UDR, Inc. and Apollo Global Management announced a $2 billion joint venture on Wednesday to acquire a portfolio of 19 multifamily communities comprising 7,059 units. Under the terms of the agreement, Apollo Global Management will invest $1.34 billion in equity capital to secure a two-thirds interest in the venture, while UDR will retain a one-third interest and manage the properties' operations.
Arranged by Citigroup Global Markets and Wells Fargo Securities, the transaction is expected to close on October 29. UDR holds an option to repurchase the interest held by Apollo in five years.
UDR executives stated the partnership provides a low-cost permanent source of equity capital. Chief Financial Officer Dave Bragg noted the deal is expected to be accretive to earnings, with proceeds intended for higher-growth assets and general corporate purposes. Chairman, President and CEO Tom Toomey added that the transaction strengthens the company's balance sheet and positions it to capitalize on marketplace opportunities.
