Government Properties to Acquire First Potomac in $1.4B Deal
ByGovernment Properties Income Trust said its planned acquisition of First Potomac Realty Trust for approximately $1.4 billion will increase its exposure to the metro Washington, D.C., market, almost doubling its ownership and operation of office properties leased to government and private sector tenants in the region.
The deal, announced in separate releases by the two office REITs, comes months after First Potomac, based in Bethesda, Md., began considering a sale. The two have entered into a definitive merger agreement that calls for Newton, Mass.-based Government Properties (GOV) to acquire all of the outstanding shares of First Potomac at $11.15 per share in cash, the repayment of approximately $418 million in debt and assumption of about $232 million of mortgage debt.
The transaction needs approval of a majority of First Potomac shareholders and is expected to close before the end of the year. The First Potomac board has already unanimously approved the merger agreement…
Government Properties to Acquire First Potomac in $1.4B Deal
