Independence Realty Trust to buy apartment operator Centerspace for $1.02 billion

RBC Capital Markets and Rothschild & Co. served as financial advisors to IRT, while BMO Capital Markets was the financial advisor for Centerspace.

(Reporting by Anshuman Tripathy in Bengaluru; Editing by Jonathan Ananda)

The acquisition of Centerspace, which owns and operates apartment communities, will give IRT access to a growing Sunbelt portfolio and the Midwest and Mountain West markets.

Upon completion, IRT stockholders will own about 78% and Centerspace shareholders about 22% of the combined REIT, which will be worth about $8.1 billion.

With a portfolio of more than 44,000 apartment units, about 58% of its net operating income will come from Sunbelt markets, 27% from the Midwest and 15% from the Mountain West, the companies said.

The deal, expected to close by the end of the fourth quarter of 2026, will also generate estimated annualized synergies of about $24 million and boost IRT's 2027 core funds from operations by about 5%, they added.

IRT's CEO Scott Schaeffer will be chief executive of the merged entity and James Sebra its president and finance chief.

The combined company will retain the name Independence Realty Trust and continue trading on the New York Stock Exchange under the symbol "IRT."

Sept. 9 (Reuters) - Independence Realty Trust IRT.N said on Wednesday it would buy Centerspace CSR.N in an all-stock deal valuing the smaller rival at about $1.02 billion, as the real estate investment trust (REIT) seeks to expand its residential portfolio in key U.S. markets.