GE buys Arden Realty for $4.8b.

Arden Realty, Inc. and GE Real Estate, a unit of GE Commercial Finance, announced that they have executed a definitive agreement pursuant to which GE Real Estate will acquire the company.

In connection with the acquisition, Trizec Properties, Inc. will acquire a Southern California portfolio comprised of 13 Arden properties, totaling 4.1 million square feet, concentrated in West Los Angeles and San Diego for approximately $1.6 billion.

Under the terms of the agreement, GE Real Estate will acquire all of Arden's common stock for $45.25 per share in cash in a merger transaction. The total transaction consideration is approximately $4.8 billion, which includes the assumption and refinancing of approximately $1.6 billion of Arden's outstanding debt.

Latham & Watkins LLP served as lead legal counsel to Arden and Venable LLP served as Maryland counsel. Attorneys for Venable LLP included James Hanks, Michael Schiffer and Carmen Fonda. Legal Assistant for Venable LLP was Andrea Barr Cohen. Lehman Brothers Inc, Wachovia Securities, and Secured Capital LLC served as financial advisors to Arden. Wachovia Securities and Houlihan Lokey Howard and Zukin also rendered fairness opinions to Arden's Board of Directors. Merrill Lynch Global Real Estate Investment Banking acted as the financial advisor to GE Commercial Finance Real Estate, and King & Spalding LLP provided legal advice. Hogan & Hartson LLP provided legal counsel to Trizec.

"This transaction brings us not only a high quality portfolio of real estate assets in the dynamic Southern California market, but also a great platform and infrastructure from which to grow," said Michael Pralle, the CEO of GE Real Estate. "It also gives GE Real Estate the opportunity to work with Trizec, one of the nation's leading real estate investment trusts, to structure a transaction that creates positive results for all three parties."