Morgan Stanley To Buy Crescent REIT
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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
It probably is a really good time to buy real estate - monthly payments are about equal to market rents ...
The part about the inventory is right on but in my area they are mostly low end and beat up ...
I worked for this man, he is a great con man and has done this in more than States then ...
You're right. If you come from Central Jersey (as the Boss and I do), you go to Florida at some ...
Maybe it was kryptonite...
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By Mike ...
I couldn't agree more.
The newspaper has always "stuck" it to the real estate agent with rates that were much higher ...
By the way, homeowners trying to get short sale approval should be aware that lenders are comparing the initial loan ...
Ouch! Thankfully I haven't come across anything like that yet. We normally don't have situations like that in ...
well, the guy was here illegally.
serves him right. 
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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?