Morgan Stanley buys Crescent Real Estate Equities
FORT WORTH, Texas ” Real estate investment trust Crescent Real Estate Equities Co. said recently 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, according to 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 has been selling properties as part of a restructuring, announced March 1, which was designed to focus the company purely on its core office properties.
“The primary goal of the strategic plan we announced on March 1 was to maximize value for our shareholders,” said John C. Goff, vice chairman and chief executive. “
Crescent owns or holds a stake in about 70 office buildings, mostly in Dallas and Houston. It also had invested in hotels and resort residential projects in the Southwest, including Vail, Scottsdale, Ariz., and Lake Tahoe, Calif.
Support Local Journalism
If you don't follow the rules, your comment may be deleted.
User Legend: Moderator Trusted User