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NEW YORK CITY-Lexington Realty Trust and Winthrop Realty Trust have entered into a joint venture to acquire stock in Wells Real Estate Investment Trust Inc. Lex-Win Acquisition LLC, as the JV has been named, plans to acquire up to 25 million shares of common stock.

Last week, Wells REIT made public its plans to offer $345 million in common stock. Morgan Stanley and JPMorgan are underwriting the offer.

The 25 million shares account for 5.2% of Wells' common stock, and will be acquired for $9 per share. The purchase price means Lex-Win will pay $225 million for its share in the company. The offer was commenced on May 25 and will expire June 27.

Since its acquisition of Newkirk Realty Trust Inc., Lexington has been actively increasing its presence in the market. In April the company paid $18 million for the 101,844-sf Gateway Office Center in Coppell, TX. That same month, Lexington purchased the 52,000-sf medical office building at 147 Milk St. in Boston for $20 million.

At the beginning on May, Lexington closed on a 15-asset acquisition. The firm took a 70% interest in the single-tenant properties located across the US for $239.3 million, which included the assumption of $156.6 million of non-recourse first mortgage financing.

These recent acquisitions puts Lexington's portfolio at more than 375 properties. The company is lead by CEO T. Will Eglin.

Winthrop for its part recently completed a $87 million industrial portfolio purchase in partnership with Sealy & Co. The 13-building acquisition added 1.15 million sf to Winthrop's holdings.

In April, Wells REIT acquired its advisor companies, a move which some speculated could leas to its shares being listed stock exchange. The transaction made Wells REIT the largest nontraded office REIT to internalize its management. At the time, Wells REIT president and CEO Donald Miller said, "This is a milestone for the REIT. We believe that this transaction will help position the REIT to advance to the next phase in its operations."

Wells REIT currently owns more than $5 billion in assets, including 82 buildings in 22 states and Washington, DC.

Instant Insights /

Lex-Win To Take 25M Shares of Wells REIT

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