Crescent Real Estate to be sold |
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Tue, 22 May 2007 22:53
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FORT WORTH, Texas (AP) - Real estate investment trust Crescent Real Estate Equities Co. said Tuesday it will be bought by another real estate investment firm, Morgan Stanley Real Estate, for about $2.34 billion.Morgan Stanley will buy the company for $22.80 per share, said Crescent, which has about 102.8 million shares outstanding.The deal includes the assumption and refinancing of about $3.1 billion of the company's outstanding and unconsolidated debt and redemption of some $440 million in preferred shares. In addition, as part of the definitive agreement with Morgan Stanley, Crescent will not pay any further dividends on its common shares.Crescent said the purchase price is a 12 percent premium over its prior 30-day average closing share price. The price is also a 6 percent premium to Tuesday's closing price of $21.62.The company announced a restructuring March 1 that included plans to sell all resort and hotel assets to focus purely on its core office properties.'The primary goal of the strategic plan we announced on March 1, 2007 was to maximize value for our shareholders,' said John C. Goff, vice chairman and chief executive. 'This transaction accelerates the realization of that goal by delivering value to our shareholders more quickly and with greater certainty.'Crescent shares rose 67 cents, or 3.2 percent, to close Tuesday at $21.62.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Crescent sells building for $80.6M 