S&P's Essex Property Trust ratings unaffected

Standard & Poor's said its ratings on Essex Property Trust Inc. are unaffected by the company's sizable bid for Town & Country Trust through a joint venture formed with AEW Capital Management and UBS Wealth Management North American Property Fund.

As currently structured, the offer is for $36 per share of Town & Country stock and values the portfolio at about $1.3 billion, including roughly $753 million in cash considerations plus the assumption of $522 million in debt (as of Sept. 30). The current bid is nonbinding and still has several obstacles to clear before receiving approval from all parties involved.

S&P said the currently limited public disclosure regarding the specific structure of the deal, along with the lack of certainty that the acquisition will occur, precludes a rating action at this time. However, should the current proposal turn into a definitive agreement, S&P said it would view the acquisition as a potential strain on Essex's West Coast management infrastructure and would consider assigning a negative outlook to the company's BBB corporate credit rating.

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