Shares of Government Properties Trust ( GPT) were climbing some 15% Tuesday on merger news.

Record Realty Trust, an Australian listed property trust, has agreed to acquire the real estate investment trust (REIT) for $10.75 per common share in cash, subject to a potential reduction of as much as 8 cents a share based on contingencies.

The merger, which is subject to approval by GPT's stockholders, is expected to close in the first quarter of 2007.

GPT is a Omaha, Neb., REIT that invests primarily in single-tenant properties under long-term leases to the U.S. government. The U.S. operations of the merged business will be based in Omaha and will maintain the Government Properties Trust brand. Thomas D. Peschio will continue in his leadership role as President and Chief Executive Officer of the merged business.

Shares of Government Properties Trust were up $1.32, or 14.3%, at $10.49 in recent trading Tuesday.