MIAMI, July 21, 2021 /PRNewswire/ -- Starwood
Capital Group ("Starwood Capital"), a global private investment
firm focused on real estate and energy investments, announced today
that its affiliate Starwood Real Estate Income Trust, Inc. has made
an enhanced all-cash, fully financed, fully actionable proposal to
acquire Monmouth Real Estate Investment Corporation (NYSE: MNR)
("Monmouth") for $19.51 per Monmouth
share reduced by the termination fee owed to Equity Commonwealth
("EQC") of $62.2 million or
$0.63 per share. This proposal
implies a net consideration of $18.88
per share to the Monmouth shareholders after payment of the
termination fee. The revised proposal, submitted on July 15, 2021, includes an
increase in the all-cash net consideration payable to Monmouth
shareholders from Starwood Capital's previous proposal
of $18.70 per Monmouth share, made on July 8, 2021.
![(PRNewsfoto/Starwood Real Estate Income Tru) (PRNewsfoto/Starwood Real Estate Income Tru)](https://mma.prnewswire.com/media/1044107/Starwood_Capital_Logo.jpg)
Starwood Capital urges the Monmouth Board of Directors to
immediately declare Starwood Capital's proposal a superior proposal
under the terms of its existing merger agreement with EQC and to
act without delay to finalize a transaction with Starwood Capital.
Starwood Capital believes that under any metric, its proposal
clearly provides Monmouth shareholders with greater value and
certainty than the existing EQC merger agreement announced on
May 4, 2021, including:
- Starwood Capital's proposal provides additional value in cash
to Monmouth shareholders. Starwood Capital's price is fixed and
shareholders can be certain of the value they will receive.
- Starwood Capital requires no additional approvals or vote of
Starwood Capital shareholders to move forward with the merger
agreement and close the transaction.
- Starwood Capital's proposal requires no further due diligence
and has no financing contingencies. All necessary financing
commitments to fund the transaction have been executed and provided
to the Monmouth Board.
- Starwood Capital has provided Monmouth with a merger agreement
that Starwood Capital is ready to sign immediately.
Starwood Capital has asked the Monmouth Board to evaluate the
merits of its cash offer in determining superiority, however
Starwood Capital has expressed a willingness to consider the
issuance of OP units for shareholders interested in a tax efficient
transaction.
Ethan Bing, Managing Director of
Starwood Capital, said, "Following the announcement of the EQC
transaction on May 4, 2021, the
implied value of the EQC offer quickly traded to a significant
discount to Starwood Capital's cash offer, where it has remained.
The implied loss to shareholders is even greater relative to the
actionable all-cash option that the Monmouth Board rejected in
agreeing to the May
4th merger agreement with EQC. Starwood's
latest enhanced all cash offer provides Monmouth shareholders with
an opportunity to recover lost value with no exposure or
uncertainty to volatility in the equity markets or a vote from our
shareholders.
We urge the Monmouth Board to fulfill their fiduciary duties to
all shareholders. We look forward to engaging with the Monmouth
Board immediately and delivering maximum value to the Monmouth
shareholders."
About Starwood Capital Group
Starwood Capital Group is a private investment firm with a core
focus on global real estate, energy infrastructure and oil &
gas. The Firm and its affiliates maintain 16 offices in seven
countries around the world, and currently have approximately 4,000
employees. Since its inception in 1991, Starwood Capital Group has
raised over $60 billion of capital,
and currently has over $80 billion of
assets under management. Through a series of comingled opportunity
funds and Starwood Real Estate Income Trust, Inc. (SREIT), a
non-listed REIT, the Firm has invested in virtually every category
of real estate on a global basis, opportunistically shifting asset
classes, geographies and positions in the capital stack as it
perceives risk/reward dynamics to be evolving. Starwood Capital
also manages Starwood Property Trust (NYSE: STWD), the largest
commercial mortgage real estate investment trust in the United States, which has successfully
deployed over $69 billion of capital
since inception and manages a portfolio of over $18 billion across debt and equity investments.
Over the past 29 years, Starwood Capital Group and its affiliates
have successfully executed an investment strategy that involves
building enterprises in both the private and public markets.
Additional information can be found at starwoodcapital.com.
Media Contacts
Tom Johnson/Dan Scorpio
Abernathy MacGregor
(212) 371-5999
tbj@abmac.com / dps@abmac.com
View original content to download
multimedia:https://www.prnewswire.com/news-releases/starwood-capital-group-confirms-submission-of-superior-proposal-to-acquire-monmouth-real-estate-investment-corporation-301338490.html
SOURCE Starwood Capital Group