Tishman, Lehman Close on $22B Archstone-Smith Deal

NEW YORK CITY-Archstone-Smith Trust has closed the previously announced acquisition by a partnership by New York City-based duo Tishman Speyer Real Estate Venture VII L.P. and Lehman Brothers Holdings Inc. The transaction, valued at approximately $22.2 billion, includes Archstone-Smith’s outstanding debt, as GlobeSt.com reported when the deal was announced in May. As expected, Archstone-Smith plans to delist its common shares from the New York Stock Exchange, making this deal the largest public-to-private M&A transaction in the multifamily REIT sector.

The deal is being financed by equity provided by Tishman Speyer, and debt and equity capital provided and arranged by Lehman, Banc of America Strategic Ventures Inc., Barclays Capital and various affiliates. As GlobeSt.com previously reported, pursuant to the merger, holders of Archstone-Smith’s common shares will receive cash consideration of $60.75 per share, without interest and less applicable withholding taxes, for each share issued and outstanding immediately prior to the effective time of the merger. In addition, in connection with the merger of Archstone-Smith Operating Trust with an affiliate of the partnership sponsored by affiliates of Tishman Speyer and Lehman Brothers, “holders of Archstone-Smith Operating Trust’s class A-1 common units will receive one newly issued Series O preferred unit of Archstone-Smith Operating Trust or, if they so elected, a cash payment equal to $60.75, without interest and less applicable withholding taxes, for each class A-1 common unit that they own, or a combination of Series O preferred units and the cash consideration.”