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Prime Group Continues to Draw Suitors

CHICAGO-With their company under contract to be sold to Lakewood, NJ-based Lightstone Group in an $889-million deal, Prime Group Realty Trust officials are prohibited from having discussions with any new bidders.

By Mark Ruda | Updated on March 06, 2005

CHICAGO-Prime Group Realty Trust, which is under contract to be sold to Lakewood, NJ-based Lightstone Group in an $889-million deal, reports occupancy across its 7.6-million-sf portfolio began the year at 83.3%, showing a slight improvement in 2004. The company also reduced its debt 25% in 2004 to $427.4 million, according to the REIT’s most recent earnings report.

Lightstone Group has agreed to buy Prime Group Realty Trust subject to ongoing litigation over a previous offer Prime-Mansur Investment Partners, which includes the REIT’s former chairman, Michael W. Reschke. However, president and chief executive officer Jeffrey A. Patterson says Prime Group Realty Trust indicates suitors continue calling. “We’ve received inquiries,” Patterson says during his company’s recent earnings conference call. “But pursuant to the merger agreement with Lightstone, we’re prohibited from having discussions.”

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