WASHINGTON, DC–Government Properties Income Trust has closed on its acquisition of First Potomac Realty Trust, bringing into its fold the REIT's 39 local office properties that total some 6.5 million square feet.
First Potomac's shareholders approved the deal, which was first announced in June, late last month.
Government Properties has acquired the REIT for a total value of $1.4 billion, including the assumption of $418 million in overall debt and approximately $232 million of outstanding mortgage debt. Government Properties acquired all of the outstanding shares of First Potomac, paying its shareholders $11.15 in cash per share at the transaction's close, or approximately $652 million. That represents a premium of 9.3% to First Potomac's share price on April 24, when the market began speculating that a deal was underway.
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
