By Lisa Kerner
Charlotte, N.C., July 24 - Liberty Property Trust entered into a definitive agreement to acquire Republic Property Trust for $14.70 per share and unit in cash. The transaction is valued at about $900 million and includes the assumption of some $415 million in debt.
Both companies' boards of directors have approved the agreement, with the transaction slated to close in the fourth quarter subject to Republic shareholders' approval.
Following the acquisition, Liberty will own 2.6 million square feet of leased office properties in the greater Washington, D.C. area. Republic's portfolio includes 13 operating properties consisting of 24 office buildings. The company also has a redevelopment property that will comprise an additional 176,000 square feet of office space in downtown Washington D.C.
"This transaction represents a major milestone for Liberty as we will acquire a very high-quality portfolio in one of the premier U.S. office markets," chairman and chief executive officer William P. Hankowsky said in a company news release.
"We have been strategically focused on entering this market for some time and are pleased to be able [to] create such a critical mass of office assets in the DC market through a single transaction. We view our entry into the Washington, DC market as a natural complement to our Baltimore/Washington corridor presence."
Liberty, a Malvern, Pa., real estate developer, was advised by Goldman Sachs & Co. and Wolf, Block, Schorr and Solis-Cohen LLP.
Republic is a Washington D.C.-based self-administered and self- managed real estate investment trust.
| Acquirer: | Liberty Property Trust
|
| Target: | Republic Property Trust
|
| Transaction total: | $900 million
|
| Price per share: | $14.70
|
| Announcement date: | July 24
|
| Expected closing: | Fourth quarter
|
| Stock price for target: | NYSE: RPB: $11.48 on July 23
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