X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

FORT WORTH-Crescent Real Estate Equities Co. shareholders this morning overwhelmingly approved the 13-year-old public company’s sale to New York City-based Morgan Stanley Real Estate. If past M&A votes are any indicator, the $6.5-billion pass could be sealed as early as Friday.

Of those who voted today at the REIT’s crown jewel, the Crescent at 400 Crescent Court Uptown, 98.7%–representing 73.9% of the outstanding shares–cast ballots in favor of the deal. “We got far more than we needed,” John C. Goff, the Fort Worth-based REIT’s vice chairman and CEO, told GlobeSt.com. As for an exact closing date, he added, “we are shooting for Friday.”

Four shareholders have lawsuits pending in Tarrant County district courts contesting the sale. But even that failed to undermine the outcome of a vote in which Crescent’s founder Richard Rainwater and executive officers control the show. Rainwater controls or owns more than 4.4 million shares and has in excess of 5.5 million partnership units. The executive officers and trust managers own slightly more than eight million shares or 7.8% of the voting block. Goff had no comment on the litigation.

Goff and Dennis H. Alberts, president and COO, forfeited restricted partnership units in recent months as part of the sale to Morgan Stanley. The waivers were valued at $10.3 million. Morgan Stanley has yet to say if any of Crescent’s upper echelon will remain with the company after it goes private.

“We were very careful to have no discussions with Morgan Stanley about who is going to stay,” Goff told GlobeSt.com, adding that those discussions will be held after the deal closes. “Clearly Morgan Stanley values not only the assets but the expertise and infrastructure in the company.” Goff said he suspects Morgan Stanley will retain the Crescent name.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.