Glenborough Sells

From Bloomberg News:

Morgan Stanley Real Estate to Acquire Glenborough Realty Trust in an All Cash Transaction

SAN MATEO, Calif.--(BUSINESS WIRE)--Aug. 21, 2006 Glenborough Realty Trust and Morgan Stanley Real Estate announced today that they have entered into a definitive agreement whereby funds managed by Morgan Stanley Real Estate will acquire all of the outstanding common stock of Glenborough in an all-cash transaction valued at approximately $1.9 billion.

Under the terms of the agreement, Morgan Stanley Real Estate will acquire all of Glenborough's outstanding common stock for $26.00 per share in cash through a merger transaction. The per share purchase price represents an 8.2% premium over Glenborough's closing price on August 18, 2006 and a 15.2% premium over the 30-day average closing price through August 18, 2006 for Glenborough's common stock on the NYSE...

Completion of the merger is currently expected to occur during the fourth quarter of 2006 and is subject to approval by Glenborough's common stockholders and certain other customary closing conditions. The transaction has been approved by Glenborough's Board of Directors, which has also recommended that the common stockholders approve the merger.

Andrew Batinovich, Glenborough President and CEO, commented, "This transaction allows Glenborough to unlock tremendous value for our stockholders and demonstrates the inherent value of Glenborough's assets and our operating platform."

Anyone who was out at Coyote Point beach this weekend saw A LOT of windsurfers enjoying the unobstructed breezes. With the County commercial vacancy rate what it is, Glenborough is probably glad it never build on the drive-in property. Too bad the drive-in wasn't left alone until they had the approvals. ;-(

- Written by Joe Baylock

Comments

[fred]

Wow, quite a large and significant deal, I wonder how much of that 1.9 billion is related to Burlingame property. With Virgin coming to town, perhaps this will be the catalyst to get something going at the drive-ins site.

I think the timing couldn't be better for this type of large real estate deal. If Mr. Batinovich and the other shareholders re-invest in the area then you have not only the capital of Morgan Stanley but also the capital of the former Glenborough properties.

Of course, they may re-invest outside the city or the state. I would think both parties are groups the council would be wise to establish/maintain friendly relations with.

[charlie brown]

I miss the Drive-in. That was real fun unlike having one too many coffees at Starbux.