Aimco Buys Units From Casden

Apartment Investment & Management Co., the No. 2 U.S. apartment owner, completed its $822-million purchase of 17,383 apartments from Beverly Hills-based Casden Properties to gain more properties in Southern California.

Apartment Investment paid $206 million in stock and $198 million in cash. The deal also includes $418 million earmarked for apartments Casden is developing. Apartment Investment is assuming $673 million in debt.

The purchase will add 11 cents to 14 cents a share to Apartment Investment’s funds from operations in 2002, increasing earnings for the year to $5.31 to $5.54 a share, the company said. That compares with analysts’ expectation of $5.35 a share, based on the average estimate of Thomson Financial/First Call.

The Denver-based real estate investment trust, also known as Aimco, earlier said it would invest as much as $50 million for a 20% stake in closely held Casden, to gain the right to buy apartments from Casden.