Government Properties to buy First Potomac

RMR group

28/06/2017 11:30

June 28 (Reuters) - Real estate investment trust Government 
Properties Income Trust  GOV.O  said on Wednesday it agreed to 
buy First Potomac Realty Trust  FPO.N  in a deal valued at about 
$1.4 billion, including debt. 
    The combined company would have $4.1 billion of consolidated 
gross assets, Government Properties said.  urn:newsml:reuters.com:*:nBw4V76Z6a 
 urn:newsml:reuters.com:*:nBwb1Mjtta 
    First Potomac shareholders will receive $11.15 per share in 
cash, representing a discount of about 2 percent to the stock's 
Wednesday close. 
    First Potomac, which had $649.5 million of total debt 
outstanding as of March 31, owns office and business park 
properties in the greater Washington, D.C. region. 
    Government Properties owns properties throughout the United 
States that are mostly leased to government tenants. 
    The deal is expected to close before the end of the year. 
    Wells Fargo Securities and Eastdil Secured acted as 
financial advisers to First Potomac, while Citigroup advised 
Government Properties. 
 
 (Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb 
Chakrabarty) 
 ((ankit.ajmera@thomsonreuters.com; within U.S. +1 646 223 8780, 
outside U.S. +91 80 6749 3067; Reuters Messaging: 
ankit.ajmera.thomsonreuters.com@reuters.net)) 
 
Keywords: FIRST POTOMAC M&A/GOVERNMENT PROPERTIES