Hypo Real Estate Capital Corp. (HRECC), a wholly owned U.S. subsidiary of Hypo Real Estate Bank International AG, and Quadra Realty Trust Inc., a New York-based commercial mortgage real estate investment trust (REIT) that is externally managed by HRECC, have entered into an agreement and plan of merger.
According to the companies, HRECC will acquire the 65.3% of Quadra's outstanding shares of common stock that it does not currently own at a price of $10.6506 per share in cash. In addition, Quadra will declare a $0.3494-per-share dividend ($9 million in the aggregate) payable to stockholders of Quadra who hold shares of Quadra common stock at the close of business on the last trading day immediately preceding the initial expiration date of the tender offer.
The tender offer and subsequent merger are subject to customary conditions for transactions of this type. Closing of the transaction is expected to occur in March.