Archstone-Smith close to sale to Lehman Brothers

The Wall Street Journal today reported speculation that a deal is imminent for Archstone-Smith, located on 660 Washington Street in Chinatown. This would be the second time that the developer will be sold in recent years. Originally called Liberty Place by developers Kevin Fitzgerald and Charles E. Smith, it was then renamed Archstone-Smith after a merger. This buyout will continue to fuel further speculation, which this blog wrote on April 4, 2007, that the adjacent Kensington Place will also be put up for sale.

The Wall Street Journal wrote on May 29, 2007 (a paid account needed to view entire article):

“Tishman Speyer Properties and Lehman Brothers Holdings Inc. yesterday were near a deal to purchase Archstone-Smith Trust, one of the nation’s leading apartment real-estate trusts, for more than $12 billion, according to people familiar with the matter.

A deal could be announced as early as today, these people said. Exact terms of the transaction couldn’t be learned, but Archstone-Smith’s market capitalization is $12.3 billion and an agreement would likely involve a premium. The buyers also would assume $6.3 billion in debt.

That would make the deal one of the largest privatizations of a public REIT. It comes on the heels of Blackstone Group’s $23 billion buyout of Equity Office Properties Trust in February. Shares of Archstone-Smith rose sharply Friday after reports that Tishman and Archstone were in discussions about a transaction. By the end of trading, shares were priced at $55.23 each, up $4.10, or 8%.”

5/31 UPDATE:
It has been confirmed, Archstone-Smith has been offered a buyout.

This entry was posted on May 28, 2007 at 10:56 pm and is filed under WORD ON THE STREET. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.

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