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Buyer Loses Lenders for Mission West Purchase

CUPERTINO, CA-Mission West's previously announced $1.8-billion acquisition by a private equity firm likely won't close because the buyer's lenders have withdrawn from the market.

By Brian K. Miller | Updated on August 13, 2007

CUPERTINO, CA-Mission West Properties said Monday that its previously announced $1.8-billion acquisition by an undisclosed private equity firm is unlikely to close because the buyer’s primary and second lenders have withdrawn from the market. The locally based REIT says it has been in touch with three other possible acquirers that have internal sources of financing and had previously expressed an interest in the company.

Mission West owns 7.8 million sf in 110 properties located mostly in the Silicon Valley portion of the San Francisco Bay Area. The company says that based on new lease and higher rents that it believes revenues and earnings will continue to increase for the remainder of this year and 2008.

The company says the initial buyer “had completed substantially all of their due diligence and had agreed to the terms of the definitive merger agreement when they were notified by their lender, one of the top five US banks, that they were withdrawing from the market and would not issue their previously agreed upon financial commitment… .” With regard to the would-be new buyers, Mission West says it is “continuing to have ongoing discussion with these companies and they are in the process of doing financial due diligence to determine if they can meet the pricing conditions set forth by Mission West.”

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