Silver Bay Realty Trust Corp. Announces Discussions To Internalize Its Management Structure

Silver Bay Realty Trust Corp.

(“Silver Bay” or the “Company”), announced today that it is engaged in advanced discussions with Pine River Domestic Management L.P. (“Pine River”) and Provident Real Estate Advisors LLC (“Provident”), the owners of Silver Bay's external manager, PRCM Real Estate Advisers LLC (“Manager”), on a transaction to internalize the management of the Company. As currently contemplated, Silver Bay expects such a transaction would involve Silver Bay's acquisition of the Manager in exchange for common stock in Silver Bay or common units in Silver Bay's operating partnership subsidiary. Following such a transaction, Silver Bay would own all material assets and intellectual property rights of the Manager currently used in the conduct of its business and would be managed by officers and employees who currently work for the Manager and who would become employees of Silver Bay or a subsidiary thereof as a result of the internalization. A special committee of the Company's Board of Directors consisting of its independent directors is negotiating the potential transaction on behalf of the Company, and has retained independent legal and financial advisors. The potential transaction remains subject to final agreement, definitive documentation and approval of the Company's stockholders, among other matters. There is no assurance that the parties will reach a definitive agreement or that the stockholders will approve the transaction.