Starwood ups offer for Monmouth Real Estate amid pushback on Zell deal

Barry Sternlicht’s investment firm refuses to concede bidding war for NJ-based REIT

National /
Aug.August 19, 2021 11:03 AM
Equity Founder Sam Zell and Starwood CEO Barry Sternlicht (Getty)

Equity Founder Sam Zell and Starwood CEO Barry Sternlicht (Getty)

Even in the face of rejection, Barry Sternlicht’s Starwood Capital is nothing if not persistent.

In the latest salvo in an ongoing bidding war over Monmouth Real Estate, Starwood again upped its yet-unsuccessful takeover offer for the Holmdel, New Jersey-based REIT on Wednesday, offering a net consideration of $19.20 per share in cash.

Starwood’s proposed takeover of Monmouth appeared to be a thing of the past. Despite the investment firm’s last-second bid for the company months ago, Monmouth affirmed in July that it would be sold to Sam Zell’s Equity Commonwealth in an all-stock deal that valued Monmouth at around $2.7 billion, revised from $3.4 billion.

Starwood made a bid that was ultimately revised to around $2.8 billion, but Monmouth believed in the upside that came with Equity’s offer.

When Monmouth confirmed its decision, Starwood said it would remain at the ready to make a deal. Now, it’s upped the ante.

“The Monmouth Board … appears committed to the interests of Monmouth insiders rather than its fiduciary duty to maximize value for all Monmouth shareholders,” said Starwood managing director Ethan Bing in a statement urging Monmouth to reconsider Equity’s offer Wednesday.

Earlier this week, Equity increased its own offer to around $19 per share, coming out to around $3.4 billion in total. But the new offer received pushback from Monmouth investor Blackwells Capital, which itself submitted a takeover bid for Monmouth earlier this year.

“The best answer for shareholders is to reject the proposed transaction, reconstitute the board and have a new strategic alternatives process that will maximize value,” Blackwells said of Equity’s new offer earlier this week, according to the Commercial Observer.

With increased pushback from investors and a new offer on the table, Monmouth’s board may once again be faced with a difficult decision on who will acquire its 120 industrial properties.





    Related Articles

    arrow_forward_ios
    (Getty)
    Manhattan office leasing jumps as availability and rents drop
    Manhattan office leasing jumps as availability and rents drop
    New York attorney general Letitia James and 109-20 Queens Boulevard in Forest Hills (Getty, Google Maps)
    Pinnacle’s Joel Wiener penalized for hiding condo conversion costs
    Pinnacle’s Joel Wiener penalized for hiding condo conversion costs
    (Photo Illustration by The Real Deal with Getty Images)
    US retail real estate rises from the ashes
    US retail real estate rises from the ashes
    Rubenstein Partners' David Rubenstein and 25 Kent Avenue in Williamsburg (Getty Images, Twenty Five Kent, Rubenstein Partners)
    Rubenstein rolls co-working company into 25 Kent
    Rubenstein rolls co-working company into 25 Kent
    Friedkin Property's David Friedkin 2 Canfield Avenue (LinkedIn, Google Maps, Getty)
    GID sells multifamily complex for $113M
    GID sells multifamily complex for $113M
    Tishman Speyer's Rob Speyer, LeFrak’s Richard LeFrak, Equity Group Investments' Sam Zell and BXP's Owen Thomas with 520 Madison Ave, 59-17 Junction Boulevard, 180 Montague Street and 601 Lexington Ave (Tishman Speyer, Getty, BXP, Google Maps)
    As city wields stick, real estate players seek state’s de-carb carrot
    As city wields stick, real estate players seek state’s de-carb carrot
    Regal Ventures’ Alexander Smith with 301 West 53rd Street (LinkedIn, Fifty Third and Eighth, Getty)
    Regal Ventures picks up Midtown retail condo in strong week of i-sales
    Regal Ventures picks up Midtown retail condo in strong week of i-sales
    Wharton Properties’ Jeff Sutton with 1551-1555 Broadway
    Sutton faces foreclosure on Times Square American Eagle
    Sutton faces foreclosure on Times Square American Eagle
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...