Two large housing companies, Bailey Properties LLC and Summit Housing Partners LLC, are merging with the hopes of creating more residential communities in several southern areas, including Baton Rouge. Once the merger is complete, the company will be formally known as BSR Trust LLC.
Bailey Properties owns apartment projects in several areas throughout the south, including Louisiana, and BSR Trust will target Baton Rouge, among other areas in the south, as key locations for growth. Given that the merger will involve assets across a number of states, the business law aspect of the deal will surely require some careful preparations.
According to the CEO of BSR Trust, the company is confident the merger will bring tremendous potential for growth while helping numerous residential communities improve in Louisiana and nine other states.
Currently, Bailey Properties maintains offices in Arkansas, while Summit Housing Partners is based in Alabama. Once the companies are merged, BSR Trust will keep corporate offices in Little Rock, Montgomery and Birmingham.
While the process of merging often increases the value of companies and benefits all parties involved, it is nevertheless a challenge due to the complicated nature of business law.
All together, the merger will seek to develop 111 multifamily properties in 10 states. Once the companies have merged, BSR Trust will consist of assets of more than $1 billion, representing 18,869 units. In targeting a city like Baton Rouge, the company seeks to bolster the standard of living in areas that are currently burdened with below-average unemployment rates.
The boards of both companies have approved the agreement for the merger to occur, but two crucial steps still remain: obtaining project leader consent and regulatory approval.
Source: arkansasbusiness.com, “Bailey Properties, Summit Housing Partners To Merge,” Lance Turner, April 12, 2012