Morgan Stanley buys Crescent Real Estate

May 22, 2007 at 10:34 PM
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FORT WORTH, Texas, May 22 (UPI) -- U.S. real estate investment trust Crescent Real Estate Equities Co. said Tuesday it agreed to be acquired by Morgan Stanley Real Estate for $6.5 billion.

Morgan Stanley will buy the company for $22.80 a share, said Crescent, which has about 102.8 million shares outstanding.

With the assumption of liabilities, the deal is worth about $6.5 billion, it said. The purchase price is 12 percent higher than Crescent's prior 30-day average closing share price and 5.5 percent more than Tuesday's closing price of $21.62.

Crescent has been undergoing a restructuring since March 1 to focus on its core office properties. Crescent owns and manages about 70 office buildings, totaling 27 million square feet, in Sunbelt cities such as Dallas and Miami. It also has investments in resort residential developments and resorts and wellness retreats.

It reported net income of $33.4 million last year.

Morgan Stanley Real Estate manages $55.6 billion in real estate assets and $26.7 billion in public real estate securities.

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