UPDATE: Gables Residential has secured the $3 billion sale (of itself) - basically to itself. Here's the scoop from CoStar News:
Clarion Partners Closes Sale to Keep Gables Residential
Operating as ING Clarion Partners, a wholly-owned subsidiary of Amsterdam-based ING Group, Clarion and a small group of institutional investors acquired Gables in 2005 for $2.8 billion including debt in one of the earliest public-to-private acquisitions of the last real estate cycle.
The transaction was one of the last major deals before the recession sent property values plunging. It is believed the decision to put Gables up for sale last year was prompted by the recent resurgence in apartment property values and the desire of Clarion's investment partners to cash out, according to sources.
Gables, now operating as a privately held REIT, manages about 35,000 apartment homes and 400,000 square feet of retail space in 60 properties across the U.S. with about 1,100 professionals, complemented by Clarion Partners’ portfolio management, research and investment management expertise.
The new ownership group led by Clarion Partners acquired Gables Residential for about $3.2 billion, according to published reports. Industry newsletter Real Estate Alert last year reported that finalists in bidding for Gables included a venture of DRA Advisors of New York and the Abu Dhabi Investment Authority; a joint venture between Greystar and Pimco; Denver-based Aimco, an apartment REIT; and CalPERS and GID Investments.
However, Clarion Partners and its CEO Stephen Furnary, which bought ING Group’s real estate investment management business in the Americas from ING in June 2011, have been widely regarded as the front-runner for months.
ATLANTA (Aug, 5, 2014) - The huge commercial real estate stories keep on coming during the "slow" summer period. In the latest development, Financial Times breaks news that Gables Residential, which has a long history in Atlanta and several key executives in Buckhead, has hired Eastdil Secured to market its entire 40,000-unit portfolio.
FT, citing unnamed sources, says the portfolio could fetch $3 billion in today's white-hot multifamily investment market.
Let's hope more blockbuster CRE stories keep hitting this summer and beyond. Please click below to read entire article (and subscribe to FT like The Wilbert Group does).
Gables Residential, the landlord of almost 40,000 family homes, has been put up for sale by its private equity owners in a deal that would mark one of the largest sales of US residential property since the financial crisis.
The Florida-based company, which also owns a small portfolio of retail property, has hired bankers and is expecting to receive initial bids in the next few weeks, according to people familiar with the
The sale would mark an exit for Gables’ private equity owners, including Clarion Partners and Silverpeak, which took the company private in 2005 for $2.8bn. The process is at an early stage, however, and no deal is certain, the people cautioned.
The exact value of Gables could not be ascertained, but people familiar with the matter said they expected it to fetch between $2bn and $3bn and attract interest from private equity, sovereign wealth and institutional investors. The company is working with property broker Eastdil Secured on the sale.