Morgan Stanley To Buy Crescent REIT
Morgan’s Stanley’s real estate arm has announced it will buy Crescent Real Estate Equities Company for a combination cash and debt. Crescent has seen some hard times lately in its holdings of 70 hotels and office buildings. They lost 15 million in the first quarter and have struggled in a period where most REIT’s have been very successful.
Morgan Stanley will buy the company for $22.80 per share, according to Crescent, which has about 102.8 million shares outstanding.
The deal includes the assumption and refinancing of about $3.1 billion of the company’s outstanding and unconsolidated debt and redemption of some $440 million in preferred shares. In addition, as part of the definitive agreement with Morgan Stanley, Crescent will not pay any further dividends on its common shares.
Crescent said the purchase price is a 12 percent premium over its prior 30-day average closing share price. The price is also a 6 percent premium to Tuesday’s closing price of $21.62.
In 2006, Crescent’s profit plunged by two-thirds, to $33.4 million, on revenue of $929 million, and it rejected a buyout offer from a Dubai investment firm. Crescent lost $15 million in the first three months of this year. via Business Week
Very funny comparison. However you don't need to pay property tax on Barbies 3 Story Dream House. With the unemployment ...
My wife has actually decided to study for and get her real eatate licence just so we dont ever have ...
I like your analogy in this article. The real estate economy really is like a patient who you cannot ...
Real Estate is hyper-local. Every market is different. Phoenix has already hit bottom and is starting to recover. We have ...
Great to hear that the big boys
are predicting recovery sooner than
most think.
Thanks for the value! 
I agree--good analogy. You have to crawl before you can walk. Right now, at least in Austin, many people would ...
I live in the Philippines and I am glad we are not on the lists... 
I have a few Litograghs of Presidents homes , made by Richard V. Sebring. yr. 1990 Do they have any ...
Comment by Garrett on 25 May 2007:
Something was in the air. If you have watched Crescent over the last 6 months, they have been selling off segments of their business, strengthening their balance sheet and getting back to their “core” business. Looks like they were also getting “lean and mean” for a buyout.
Comment by NANCY SODEMAN on 10 July 2007:
SHOULD I SELL BY CRESCENT reit stock?