American Landmark/Electra America Ready to Transact and Calls on Pure Multi-Family REIT to Negotiate
LAKE PARK, Fla., June 27, 2019 (GLOBE NEWSWIRE) -- In response to a proposal by American Landmark/Electra America (“ALEA”), the owner and operator of multifamily properties in the U.S., to acquire 100% of the outstanding Class A Units (“Units”) of Pure Multi-Family REIT LP (TO:RUF.U) (TO:RUF.UN) (“Pure”) for an all-cash price per Unit of US$7.61 (equivalent to CDN $10.03 based on the June 25, 2019 exchange rate), on June 26, 2019 Pure issued a press release in which it disclosed having previously entered into exclusive negotiations with a third party with respect to a potential transaction involving Pure.
In response, ALEA has today delivered the following letter to Robert W. King, Pure’s Chairman of the Board of Directors:
“Further to our letter to you of June 26, 2019, and in response to last night’s press release by Pure Multi-Family REIT LP (“Pure”), we would note the following:
- We are prepared to enter into negotiations with Pure and its advisors on a non-exclusive basis. We believe it is in the interest of Pure and its Unitholders for Pure to terminate its existing exclusivity arrangement which it disclosed last night and to conduct negotiations with all prospective bidders on an equal, non-exclusive basis.
- We indicated in our June 18, 2019 proposal that we are seeking to conduct only limited due diligence of Pure. To be clear, our due diligence efforts would be limited to the corporate items listed in the attached schedule. We would not require any property visitations given our experience with multi-family property acquisitions and operations. We would expect to be able to complete our due diligence within ten days, which we believe uniquely positions ALEA to conclude a transaction on an expedited timetable.
- We indicated in our June 18, 2019 proposal that we were prepared to enter into a definitive agreement on substantially the same terms as contemplated by the Arrangement Agreement negotiated between our respective representatives last year. Again, we believe this uniquely positions ALEA to conclude a transaction on an expedited timetable.
- We indicated in our June 18, 2019 proposal that, upon execution of a definitive agreement with respect to our proposed transaction, we would deposit with an agreed third party escrow agent the amount of US$40 million in cash to secure our obligation to close the transaction.
Far from being a “conditioned” proposal as characterized in Pure’s press release, we believe our proposal would be better characterized as “compelling” for Pure and its shareholders.”