The Firm is representing an affiliate of Blackstone Real Estate Partners VII in connection with its acquisition of Apple REIT Six, Inc., a public real estate investment trust. The total transaction value, including transaction costs and the assumption or repayment of the Company’s debt, is approximately $1.2 billion. Pursuant to the terms of the merger agreement, each issued and outstanding Unit (Common Share and related Series A Preferred Share) of the Company will be converted into the right to receive consideration with a stated value of $11.10 per Unit consisting of (i) $9.20 in cash and (ii) one share of 7% Series A Cumulative Redeemable Preferred Stock having a liquidation preference of $1.90 per share. The agreement is subject to shareholder approval and customary closing conditions.
Apple REIT Six is a REIT focused on upscale, extended-stay and select-service hotels. The portfolio consists of 66 hotels, containing a total of 7,658 guestrooms, diversified among 18 states.
The Simpson Thacher team includes Brian Stadler, Sebastian Tiller and Matt Farrell (M&A); Greg Ressa, Krista Miniutti, Daniel Molina, Nitya Kumar and Scott Mathias (Real Estate); Andy Keller and Justin Cooke (Capital Markets); John Hart, Adam Wells and Michael Cardella (Tax); and Greg Grogan and Jennifer Pepin (Executive Compensation and Employee Benefits).
