AmREIT Spurns Regency Centers’ Bid, Seeks Offers from Other Suitors in Exploring Strategic Alternatives
July 30, 2014
AmREIT Inc. has decided to explore strategic alternatives rather than accept an unsolicited offer from rival Regency Centers Corp. at $22 per share.
AmREIT is a 29-year-old equity real estate investment trust focused on neighborhood and community shopping centers and mixed-use properties located in in affluent submarkets of five primary markets: Houston, Dallas, San Antonio, Austin and Atlanta.
“AmREIT has one of the highest quality retail and mixed-use real estate portfolios in the country, with nearly 50 premier properties strategically located in five of the most desirable growth markets in the U.S.,” said Kerr Taylor, AmREIT's chairman and CEO.
"Given the value of our unique assets, robust development pipeline, and promising future prospects supported by our top of class platform, our board believes that now is the right time to conduct a thorough review to determine how best to continue to enhance stockholder value, and we are taking appropriate action to ensure a thorough evaluation,” Taylor added.
At the time of Regency’s offer three weeks ago, some institutional shareholders and REIT analysts weighed in to say that the $22 per share offer undervalued AmREIT’s properites.
Separately, AmREIT announced that is begun the process of terminating leases or relocating tenants occupying a portion of its Uptown Park property known as the “Baker Site,” and its Courtyard at Post Oak property at Post Oak and San Felipe in Houston, in order to prepare those sites for redevelopment.
Uptown Park is a low-density, single-story project located on 17 acres at the intersection of Post Oak and Loop 610 in Houston. The redevelopment site is now occupied by one single-story building with GLA of 12,200 square feet housing three tenants.
AmREIT has said that the site is best suited for an expanded retail footprint and a for-rent multifamily tower above. It has been in the process of trying to execute a ground lease with an experienced luxury multi-family developer that would develop and own the multifamily improvements, with AmREIT continuing to own the planned retail component in a condominium interest.