$19 Billion Private equity real estate deal: Bubble time?

Posted Nov 20th 2006 10:50AM by Tom Taulli
Filed under: Deals, Private Equity

It's another mega deal: Private equity investor, Blackstone, has agreed to buy Equity Office Properties Trust for about $19 billion. The company focuses on office buildings.

Actually, if you factor-in the debt, the purchase price comes to about $36 billion.

As a result, the deal sets two records: a) the biggest going-private transaction and b) the biggest real estate deal.

Although, given the huge amounts of money in private equity funds, we are likely to see even bigger go-private transactions -- soon.

The founder of Equity Office Properties, Samuel Zell, is a legend in the real estate business. Over the years, he has had a uncanny ability to gauge market trends.

Interestingly enough, he will not be a part of the company on an on-going basis. Might he just want to take money off the table before a blow-up?

Tom Taulli is the author of various books, including the Complete M&A Handbook and operates InvestorOffering.com.

Tags: Blackstone Group, BlackstoneGroup, Equity Office Properties Trust, EquityOfficePropertiesTrust

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Reader Comments (Page 1 of 1)

11-20-2006 @ 11:24AM

Ian said...

I'll tell you what REALLY looks like a bubble. Hint - see URL :)

11-20-2006 @ 7:00PM

San Diego Lasik Doctor said...

Interesting post, the San Diego real estate markets decline may actually cause an induced real estate recession not only in San Diego but in other hot markets of the recent past.

For an interesting "inside" perspective on this phenomenon I found a great blog located at http://www.brokerforyou.com/brokerforyou