Jones Lang LaSalle
Blackstone buys developer for $5.6 billion
by Catherine Tymkiw
March 06, 2006
The Manhattan buyout firm agreed to acquire real estate investment trust CarrAmerica Realty Corp., adding a commercial developer to its holdings.
Manhattan buyout firm Blackstone Group agreed to buy real estate investment trust CarrAmerica Realty Corp. for about $5.6 billion, adding a commercial developer to its growing real estate holdings. Blackstone's real estate group has raised about $10 billion in real estate investments since its inception in 1992, and has a long track record of investing in office buildings, hotels and other office properties.
Washington, D.C.-based CarrAmerica has interests in 285 offices properties totaling 26.3 million square feet in cities like Los Angeles, Chicago, Dallas and Seattle. The deal values CarrAmerica shares at $44.75 each in cash -- an 18.4% premium over the stock’s closing price on Feb. 16, a day before news reports speculated about a potential acquisition. "The company represents one of the premier collections of people and properties in the country and will provide us with a valuable platform for future investments in the office sector," said Blackstone senior managing director Jonathan Gray in a statement. Blackstone and other private equity firms have taken advantage of low interest rates to go on a buying spree. Operating alone or with an investor group in the last 12 months, Blackstone has acquired nine companies, including hotel operators Wyndham International and La Quinta, Legoland Parks, and health and life insurer UICI.
Blackstone buys developer for $5.6 billion
by Catherine Tymkiw
March 06, 2006
The Manhattan buyout firm agreed to acquire real estate investment trust CarrAmerica Realty Corp., adding a commercial developer to its holdings.
Manhattan buyout firm Blackstone Group agreed to buy real estate investment trust CarrAmerica Realty Corp. for about $5.6 billion, adding a commercial developer to its growing real estate holdings. Blackstone's real estate group has raised about $10 billion in real estate investments since its inception in 1992, and has a long track record of investing in office buildings, hotels and other office properties.
Washington, D.C.-based CarrAmerica has interests in 285 offices properties totaling 26.3 million square feet in cities like Los Angeles, Chicago, Dallas and Seattle. The deal values CarrAmerica shares at $44.75 each in cash -- an 18.4% premium over the stock’s closing price on Feb. 16, a day before news reports speculated about a potential acquisition. "The company represents one of the premier collections of people and properties in the country and will provide us with a valuable platform for future investments in the office sector," said Blackstone senior managing director Jonathan Gray in a statement. Blackstone and other private equity firms have taken advantage of low interest rates to go on a buying spree. Operating alone or with an investor group in the last 12 months, Blackstone has acquired nine companies, including hotel operators Wyndham International and La Quinta, Legoland Parks, and health and life insurer UICI.
posted by Jones Lang LaSalle NJ News Blog at 3:05 PM
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