Washington – Farallon Capital Management LLC today said it offered to buy Affordable Residential Communities Inc.’s home community business for $1.84 billion in cash.
Affordable Residential is an Englewood, Colo.-based real estate investment trust.
Farallon and Affordable Residential agreed on Friday to negotiate a potential deal on an exclusive basis through April 16, according to a filing with the Securities and Exchange Commission.
Under the agreement, Affordable Residential can’t solicit other proposals and would have to pay a $2.5 million termination fee and expenses of up to $1.25 million to Farallon if the real estate investment trust violates the pact.
Farallon, a San Francisco-based investment firm, also reported today that it holds a 10 percent stake in Affordable Residential.
Farallon beneficially owns 5.7 million shares of Affordable Residential, up from a previously reported 4.6 million-share stake in the real estate investment trust.
Farallon said its offer doesn’t include Affordable Residential’s property and casualty holding company, NLASCO Inc.
Affordable Residential’s shares rose 25 cents, or 2.1 percent, to $12.30 in afternoon trading on the New York Stock Exchange.
