Shearman & Sterling served as special US counsel to Milestone Apartments Real Estate Investment Trust in connection with its agreement to internalize its asset management function. As a result of the internalization, the annual management fee and incentive fee expenses will be eliminated. The closing of the transaction is expected to occur on September 30, 2016, subject to unitholder approval and other customary conditions.
Upon closing of the transaction, the REIT’s operating partnership will acquire TMG Partners L.P., the REIT’s external asset manager, for $25 million in cash and 5.3 million class B limited partnership units of the REIT’s operating partnership. The aggregate consideration is approximately $106.5 million.
Milestone Apartments REIT is an unincorporated, open-ended real estate investment trust governed by the laws of Ontario, Canada. The REIT’s portfolio consists of 72 multifamily garden-style residential properties, comprising 22,546 apartment units located in 14 major metropolitan markets throughout the Southeast and Southwest United States. The REIT is the largest real estate investment trust listed on the Toronto Stock Exchange focused solely on the US multifamily sector.