GE Acquires Arden Realty
GE will pay $45.25 of cash for each Arden common share and assume the $1.6 billion of Arden debt. Arden shares fell $1.84, or 3.9%, in premarket trading to $45.15. Realty Stock Review, a trade publication, reported earlier this week that the deal would be $48 per share.
In conjunction with the merger, Trizec Properties (TRZ) is buying 13 of Arden's properties, totaling 4.1 million square feet, concentrated in West Los Angeles and San Diego, for about $1.6 billion.
Pending the close of the transaction, Arden expects to continue to pay its quarterly dividend, which amounts to $2.02 annually. The transaction should close in the first quarter of 2006.The Arden deal continues a trend of REITs being acquired by financial buyers this year. Five other public REITs have been taken private in 2005, with private equity groups and pension fund money paying premiums for the stocks. Arden is seen as an attractive buy because of its portfolio centered around the Southern California office market, which has been on a
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