STAMFORD, Conn. and LOS ANGELES — Setting up on its progress ambitions in the Western region of the U.S., GE Genuine Estate (NYSE:GE) introduced the completion of its acquisition of Arden Realty, Inc. (NYSE:ARI) , the major publicly-traded workplace landlord in Southern California. The obtain rate of roughly $4.8 billion includes the assumption and refinancing of $1.six billion of Arden’s fantastic debt. In link with this transaction, Trizec Qualities, Inc. (NYSE:TRZ) obtained 13 Arden houses for roughly $1.six billion. The remainder of the Arden portfolio will stay intact and continue on to function as Arden Realty.
The GE and Arden leadership will leverage Arden’s leading existence and robust associations in the region to speedily put into action a strategic asset system to increase further more into its main markets. GE will also use the Arden system to grow appreciably in other California markets, Washington and Arizona.
1 member of GE and four associates of the Arden leadership teams have been appointed to oversee Arden:
— Joaquin de Monet, Managing Director at GE Genuine Estate, has been named President and CEO of Arden Realty.
— Robert Peddicord, previously Govt Vice President, Leasing and Operations at Arden Realty, assumes the position of Main Running Officer.
— Andres Gavinet, previously 1st Vice President and Main Accounting Officer, has been named Main Money Officer.
— Howard Stern and David Swartz stay Senior Vice President and Main Investment decision Officer and Senior Vice President and Standard Counsel, respectively.
“We devote where there are exceptional opportunities for progress, each in asset price and portfolio size. This transaction appreciably expands our footprint in a marketplace that we consider is a single of the strongest markets in the U.S.,” commented Joe Parsons, President, North American Fairness at GE Genuine Estate. “We will continue on to evaluate opportunities to obtain good quality property in Southern California, and look forward to Joaquin and Robert’s leadership to assistance us increase Arden’s existence in the Western region.”
“GE and Arden are a dynamic force in a single of the country’s most strong markets,” included Peddicord. “GE’s sound monetary backing and worldwide means put together with Arden’s nearby marketplace expertise and fantastic functionality history will significantly enrich Arden’s means to grow in the Western region of the U.S.”
The portion bought by Trizec Qualities includes 13 houses comprising roughly 4 million square ft.
Tim Callahan, Trizec’s president and main government officer commented, “As a result of this transaction, we have obtained a substantial, high-good quality portfolio that is properly found in markets that we believe that have robust economies, optimistic employment tendencies and expanding rental premiums.” Mr. Callahan included, “We are happy to have partnered with GE in the execution of this transaction.”
Merrill Lynch acted as the monetary advisor to GE Genuine Estate, and King & Spalding LLP offered legal suggestions. Lehman Brothers Inc., Wachovia Securities, and Secured Funds LLC served as monetary advisors to Arden in this transaction. Wachovia Securities and Houlihan Lokey Howard and Zukin also rendered fairness views to …