Mission West Assets To Fetch $1.3B

CUPERTINO, CA-Those who follow @GlobeStcom on Twitter and @GlobeStLIVE may have seen a post teasing the announcement today, but GlobeSt.com has learned that Mission West Properties Inc. has entered into two agreements to dispose of all of its real estate assets for an enterprise value of approximately $1.3 billion. Mission West has agreed to sell certain of its real estate assets to a JV entity sponsored by affiliates of Divco West and TPG Real Estate in exchange for approximately $400 million in cash and $398 million in assumed debts and other obligations. 

In addition, according to a prepared statement, Mission West has agreed that certain operating partnerships will retain their remaining assets and liabilities with an approximate net value of $525 million and the non-converting limited partners will retain an ownership interest in those operating partnerships. 

Following completion of these transactions, Mission West intends to liquidate after satisfying outstanding debts, applicable taxes and related transaction costs, according to the statement. Mission West currently estimates these transactions will result in a distribution to stockholders (and the O.P. unit holders that elect to redeem their O.P. units) in the range of $9.20 to $9.28 per share in cash, although the amount ultimately distributed to stockholders may be below this range. The estimated distribution amount includes the sales proceeds and an allocation for the final 2012 annual dividend in accordance with the REIT's statutory distribution requirements. 

GlobeSt.com previously reported that a sale was looming for the company as chairman and CEO, Carl E. Berg, previously mentioned in February.

Mission West currently expects the transactions to close by year end, according to a statement.  However, Mission West's ability to consummate the transactions is subject to stockholder approval and satisfaction of certain other conditions to closing. It is anticipated that Mission West stockholders of record as of November 2, 2012, the record date set for the special meeting, will be entitled to vote on the proposed transactions shortly before the proposed closing.

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.

Divco West tells GlobeSt.com that it cannot say anything on record until the deal is approved by shareholders.

GlobeSt.com will update this story as further information becomes available.