(RTTNews) – Apartment Investment and Manaement Co. or Aimco (AIV) announced Monday its plan to separate its business into two, separate and distinct, publicly traded companies, Apartment Income REIT or AIR and Aimco.
AIR, a newly formed, self-managed real estate investment trust will provide a simple and transparent way to invest in the multi-family sector: ownership with public market liquidity of a diversified portfolio of apartment communities, with low financial leverage, limited execution risk, best-in-class operations, and sector low management costs.
Meanwhile, Aimco will retain its growing business of developing and redeveloping apartment communities while also pursuing other accretive transactions.
A vote of the Aimco shareholders is not required in connection with the spin-off and after completion of the transaction Aimco shareholders will own shares in two separate and distinct companies: Aimco and AIR.
The decision was based on a longer-term strategic review by management and made through a highly engaged board process over the past several months.
Aimco also announced, as part of its longer-term strategy to reduce financial leverage and to rebalance its capital allocation among target markets, that it has entered into a ten-year joint venture with a passive institutional investor to own jointly 12 multi-family properties with 4,051 units located in California, valued at $2.4 billion, or approximately $592,000 per unit.
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