Blackstone Group to acquire CarrAmerica Realty Corp.

The Blackstone Group has stated that they are planning to acquire CarrAmerica Realty Corp. CarrAmerica is a commercial real estate investment trust and the deal would be worth around an astounding $5.6 billion. This would also be the largest public-to-private REIT deal ever struck.

Blackstone as a result would be acquiring all CarrAmerica shares for $44.75 each. This price is a premium of nearly 9% on the current share prices of the company in the stock markets. However, the share prices are already inflated with reports of this rumor heating up the market in the last couple of months.

This deal also makes it the seventh time in two years that Blackstone has acquired publicly traded real estate entities. The plan is to allow the firm to make future investments in the office real estate sector as per the statement released by the company.

CarrAmerica added in a statement that they plan to pay its regular quarterly dividend for the quarter ending March 31. After that, they would not pay any dividends on common stock after that.

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