UDR Inc. is considering a merger with Mack-Cali Realty Corp., Reuters reported, citing people familiar with the matter.
UDR is believed to be in discussions with Rizk Ventures CEO Thomas Rizk regarding a possible team-up for the potential transaction, the unnamed sources noted, adding that the U.S. multifamily real estate investment trust with a market capitalization of roughly $14 billion already informed Mack-Cali of its interest. They added that UDR is interested in Mack-Cali's residential properties, while Rizk is targeting some of the company's commercial office space.
Two of the people further noted that the talks between UDR and Rizk are centered on whether to make an offer to acquire all of Mack-Cali and use debt to help finance a transaction.
UDR and Mack-Cali did not immediately respond to requests for comment, while Rizk Ventures declined to comment, the Dec. 20 report added. Rizk was head of Cali Realty, which merged with Mack Co. in 1997 to form Mack-Cali. Rizk then waas CEO of Mack-Cali from 1997 to 1999.
Mack-Cali has a market capitalization of $1.8 billion and $3.2 billion of total debt as of Sept. 30, according to Reuters.
The multifamily rental properties and commercial office space owner established a board committee in May to review strategic options for the company including its divestment. In line with the committee's recommendation, it recently said it is selling roughly 6.6 million square feet of suburban office properties, with completion of the sale expected in 2020.