Equity Residential reached an agreement with affiliates of Bank of America and Barclays PLC to extend to April 19, 2012 the period during which the company has the exclusive right to contract with the sellers to acquire their remaining 26.5 percent interest in Archstone - a privately-held owner, operator and developer of multifamily apartment properties.
As part of the extension agreement, the minimum price at which the Sellers are obligated to contract with Equity Residential to sell this interest in Archstone was increased to $1.485 billion. If Equity Residential offers a price of $1.485 billion or more and the interest is sold to the other Archstone owner under its right of first offer, the company will receive a breakup fee of $80 million. Equity Residential remains under no contractual obligation to acquire this interest in Archstone.
Lehman Brothers retains a right of first offer on the interest in Archstone.
Read the full article on National Real Estate Investor.