GE completes $4.8b acquisition of Arden Realty.

Building on its growth ambitions in the Western region of the U.S., GE Real Estate announced the completion of its acquisition of Arden Realty, Inc., the largest publicly-traded office landlord in Southern California.

The purchase price of approximately $4.8 billion includes the assumption and refinancing of $1.6 billion of Arden's outstanding debt.

In connection with this transaction, Trizec Properties, Inc. acquired 13 Arden properties for approximately $1.6 billion. The remainder of the Arden portfolio will stay intact and continue to operate as Arden Realty.

The GE and Arden leadership will leverage Arden's premier presence and strong relationships in the region to quickly implement a strategic asset plan to expand further into core markets. GE will also use the Arden platform to grow significantly in other California markets, Washington and Arizona.

One member of GE and four members of the Arden leadership teams have been appointed to oversee Arden: Joaquin de Monet, managing director at GE Real Estate, has been named president and CEO of Arden Realty; Robert Peddicord, formerly executive vice president, leasing and operations at Arden Realty, assumes the role of chief operating officer.

Andres Gavinet, formerly first vice president and chief accounting officer has been named chief financial officer and; Howard Stern and David Swartz remain senior vice president and chief investment officer, and senior vice president and general counsel, respectively.

"We invest where there are excellent opportunities for growth, both in asset value and portfolio size. This transaction significantly expands our footprint in a market that we think is one of the strongest markets in the U.S.," commented Joe Parsons, president, North American Equity at GE Real Estate.

"We will continue to assess opportunities to acquire quality assets in Southern California, and look forward to Joaquin and Robert's leadership to help us expand Arden's presence in the Western region."

The portion purchase by Trizec Properties includes 13 properties comprising approximately 4 million square feet. Tim Callahan, Trizec's president and chief executive officer commented, "Through this transaction, we have acquired a large, high-quality portfolio that is well located in markets that we believe have strong economies, positive employment trends and growing rental rates."

Merrill Lynch acted as the financial advisor to GE Real Estate, and King & Spalding LLP provided legal advice. Lehman Brotheres Inc., Wachovia Securities, and Secured Capital LLC served as financial advisors to Arden in this transaction. Wachovia Securities and Houlihan Lokey Howard and Zukin also rendered fairness opinions to Arden's Board of Directors.

Latham & Watkins LLP and Venable LLP provided legal counsel to the company. Hogan & Hartson LLP provided legal counsel to Trizec.