AvalonBay, Equity Residential Complete Merger to Form $70 Billion Vivmark Residential
Article excerpt
AvalonBay Communities, Inc. (NYSE: AVB) and Equity Residential (NYSE: EQR) have completed their merger of equals, creating Vivmark Residential, a national apartment company with approximately $70 billion in enterprise value, more than 184,000 rental units and a $4.4 billion active development pipeline. Vivmark Residential is expected to begin trading on the New York Stock Exchange under the ticker VMRK on Aug. 18. The combined company has an equity market capitalization of approximately $51 billion, making it one of the country’s largest publicly traded residential real estate platforms. The transaction combines two major apartment portfolios and development organizations at a time when scale, access to capital and operating efficiency are increasingly important across the multifamily sector. Vivmark enters the market with more than 11,100 apartments under construction across 33 communities and approximately 9,900 additional units represented by $4.2 billion of development rights. Former AvalonBay shareholders own approximately 51% of the combined company on a fully diluted basis, while former Equity Residential shareholders hold approximately 49%. Under the merger agreement, each outstanding AvalonBay share was converted into the right to receive 2.793 shares of Vivmark. The transaction is expected to qualify as a tax-free reorganization for U.S. federal income tax...
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Vivmark is also expanding its affordable housing initiatives through a $1.5 million commitment to True Ground Housing Partners for resident services in the greater Washington, D.C., region.
