Categorized | Commercial

Archstone Attracting Interest from Multiple Companies

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With multiple bids coming in regarding the potential sale of Archstone, the apartment giant, there has been a great deal of debate among its ownership trio as to how the sale should be handled. Currently, Blackstone Group, Brookfield Asset Management, Equity Residential, and AvalonBay Communities have all submitted very serious offers to purchase the apartment giant outright. However, there is no clear indication as to whether any of the offers would be accepted or even considered.

The trio of Bank of America, Barclays, and the estate of Lehman currently own Archstone. The company owns roughly seventy-seven thousand apartments, and was purchased by Lehman in 2007 for over twenty billion dollars. The owners have heavily debated between completing a private sale of Archstone and offering the company publicly. Barclays, the major advocate of a private sale, has hopes that some company will put up a private offer that is too good for the other owners to refuse, though that hasn’t happened yet.

Many analysts believe that the value of Archstone has rebounded considerably since its major decline in 2007, and could be worth as much as nineteen billion dollars. While little details have been leaked regarding the four offers that the ownership trio has thus far received, it is said that they involved buying pieces of the company rather than the company as a whole. None of the bids involve an all-cash purchase.

Because there are three owners of Archstone, and each one has different hopes for how the company sale will be handled, it is unlikely that any kind of deal will be made soon.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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