NEW YORK CITY-If you thought privatization was a regional strategy, think again. The board of trustees of Chicago-based Equity Office Properties Trust has agreed to a buyout by the aggressive Blackstone Group in a deal that is being valued at $36 billion. That includes some $16 billion in debt, according to reports.
EOP owns 580 buildings--some 108.6 million sf--in 16 states. The deal is considered to be the largest single real estate transaction in history.
The deal is a continuation of a Blackstone buying spree, which in recent months has included Trizec and CarrAmerica. This latest deal calls for the Manhattan based-investment and advisory firm to acquire all of EOP's outstanding common stock for $48.50 per share. That represents an 8.5% premium over Friday's closing price and a 20.5% premium over the REIT's three month average.
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John Salustri
John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.
