Campus Crest is being sold to Harrison Street Real Estate Capital in a deal currently valued at $7.02 per share, an amount that includes $6.90 in cash and 12 cents per share from the net proceeds of Campus Crest’s sale in the Canadian venture.
“We are pleased to have successfully concluded the sale of the Montreal joint venture,” said Campus Crest Chief Investment Officer and President Aaron Halfacre. “Not only does the sale represent an important step in the merger process, but also reflects the accomplishment of a key goal of the strategic repositioning we initiated last year.”
The Harrison Street deal, valued at around $1.9 billion when it was announced last month, is slated to close by the end of the year. Harrison Street, based in Chicago, is a real estate private equity firm founded in 2005.
Several months ago Campus Crest said it was retaining management consulting firm Alvarez & Marsal North America to “support its ongoing efforts to improve operational efficiency, drive profitable growth and deliver maximum shareholder value.”
Campus Crest is most active in the Southeast, but does not manage any properties in Charlotte. In November, the company put up nine properties for sale that it had planned to develop, which included 27.3 acres off Kempsford Drive in the University City area near UNC Charlotte’s campus. The other properties were in Michigan, Washington State, Florida, California, Texas, Arizona and Alabama.
Also in November, former Campus Crest CEO Ted W. Rollins and Chief Financial Officer Donnie Bobbitt resigned the same day the company’s third-quarter earnings came in lower than analysts’ estimates. The company’s chief construction and facilities officer and COO had resigned a month prior.