SAN FRANCISCO–BRE Properties, Inc. (NYSE:BRE), a leading owner, operator and developer of high-quality apartment communities in targeted growth markets in California and Seattle, today announced that its Board of Directors, working with its management team and the Company’s advisors, has been in an ongoing process of exploring strategic alternatives to enhance shareholder value. The BRE Board has undertaken a comprehensive and thorough review of alternatives that include, among other things, a possible sale or merger of BRE. Wells Fargo Securities is acting as financial advisor and Latham & Watkins LLP is serving as legal advisor to BRE in connection with the review of strategic alternatives.
In connection with a solicitation of indications of interest by BRE, the Company has received a non-binding proposal from Essex Property Trust, Inc. (NYSE:ESS) (“Essex”) to acquire BRE in a negotiated merger in which each outstanding share of BRE common stock would be exchanged for 0.2971 shares of Essex common stock and $12.33 in cash. The companies are currently engaged in discussions regarding this proposal and have agreed to an exclusivity period.
The Company notes that no decision has been made by the Board regarding any particular alternative available to the Company (including any transaction with Essex) and that there can be no assurances that any transaction will be entered into or consummated. BRE does not intend to discuss or disclose developments with respect to this process unless and until the Board has approved a definitive course of action.
About BRE Properties
BRE Properties, based in San Francisco, California, focuses on the development, acquisition and management of apartment communities located primarily in the major metropolitan markets of Southern and Northern California and Seattle. As of September 30, 2013, BRE directly owned 75 multifamily communities (totaling 21,396 homes) and has a joint venture interest in an additional apartment community (totaling 252 homes). BRE Properties is a real estate investment trust (REIT) listed in the S&P MidCap 400 Index. For more information on BRE Properties, please visit our website at www.breproperties.com.