NEW YORK CITY-Archstone-Smith Trust has closed the previouslyannounced acquisition by a partnership by New York City-based duoTishman Speyer Real Estate Venture VII L.P. and Lehman BrothersHoldings Inc. The transaction, valued at approximately $22.2 billion,includes Archstone-Smith's outstanding debt, as GlobeSt.comreported when the deal was announced in May. As expected,Archstone-Smith plans to delist its common shares from the New YorkStock Exchange, making this deal the largest public-to-privateM&A transaction in the multifamily REIT sector.

The deal is being financed by equity provided by Tishman Speyer,and debt and equity capital provided and arranged by Lehman, Bancof America Strategic Ventures Inc., Barclays Capital and variousaffiliates. As GlobeSt.com previously reported, pursuant to themerger, holders of Archstone-Smith's common shares will receivecash consideration of $60.75 per share, without interest and lessapplicable withholding taxes, for each share issued and outstandingimmediately prior to the effective time of the merger. In addition,in connection with the merger of Archstone-Smith Operating Trustwith an affiliate of the partnership sponsored by affiliates ofTishman Speyer and Lehman Brothers, “holders of Archstone-SmithOperating Trust's class A-1 common units will receive one newlyissued Series O preferred unit of Archstone-Smith Operating Trustor, if they so elected, a cash payment equal to $60.75, withoutinterest and less applicable withholding taxes, for each class A-1common unit that they own, or a combination of Series O preferredunits and the cash consideration.”

“This transaction with Tishman Speyer and Lehman Brothers is apowerful combination of real estate assets, management, andexpertise that will greatly benefit all parties,” notes R. ScotSellers, who will remain CEO of the Denver based Archstone, in aprepared statement. “As the rental market continues to strengthen,the Archstone-Smith apartment portfolio is well-positioned tocreate tremendous long-term value.”