CUPERTINO, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement, but GlobeSt.com has learned that in one of the bigger deals of the year, Mission West Properties Inc. has completed the transactions to dispose of all of its real estate assets for an enterprise value of approximately $1.3 billion.
Mission West sold certain of its real estate assets to a joint venture entity sponsored by affiliates of Divco West and TPG Real Estate in exchange for approximately $400 million in cash and $398 million in assumed mortgage debts and other obligations, as adjusted for certain closing costs, escrows and other items. GlobeSt.com first reported on the deal in early November, but it had been rumored for some time. GlobeSt.com previously reported that a sale was looming for the company as chairman and CEO, Carl E. Berg, mentioned in February. According to a previous GlobeSt.com article, over the course of this year, the company conducted a broad-based marketing effort with the assistance of various third party advisors, according to Berg.
In addition, Mission West completed a separate transaction with certain operating partnerships in which the operating partnerships retained certain assets and liabilities with an approximate net value of $525 million. Limited partners who did not convert their ownership interests into common stock of the company retained ownership interests in those operating partnerships, according to a prepared statement. Mission West then withdrew as the general partner of each of the operating partnerships and with respect to any limited partnership interests it held in the operating partnerships.
The board of directors has declared Dec. 28, 2012, as the record date for all common stockholders to automatically become the holder of one unit of beneficial interest in a liquidating trust to be established by Mission West for each share of the company’s common stock on a 1:1 basis. All cash, other assets and remaining liabilities of the company are expected to be transferred to the liquidating trust on Dec. 28, 2012.
The board anticipates the initial distribution from the liquidating trust will be completed on or before Jan. 15, 2013.