Private equity group Blackstone Real Estate Partners has bought Sam Zell’s Equity Office Properties Trust (EOP), one of the largest property companies in the world, for $36bn.
The price for EOP, the largest US Real Estate Investment Trust (REIT), equates to $48.50 per share, an 8.5% premium to Friday’s close and market capitalisation of $15.7bn.
JP Morgan said the transaction underlined its view that the bull market in property was moving into a phase in which: “mergers and acquisitions activity plays an important role and every property company is a potential takeover target”.
The analyst added that it expected more mergers and acquisitions activity in Europe because of strong capital flows, under-managed portfolios, REIT introductions and scarcity of quality product.
REIT property portfolios worth billions of dollars have been taken private in the past three months in the US.
References: EGi News 20/11/06
