Lightstone Buying Prime Group

The Lightstone Group, Lakewood, N.J., is acquiring Prime Group Realty Trust, Chicago, for about $889.4 million, Prime Group has reported.This includes $7.25 in cash for each Prime Group common share and limited partner unit of Prime Group's operating partnership, as well as the assumption of $595.4 million of Prime Group's debt outstanding (including its joint-venture-related debt) and the "liquidation preference" on some outstanding Prime Group preferred shares. Prime Group's portfolio consists mostly of Chicago-area industrial and office properties. Jeffrey A. Patterson, Prime Group's president and chief executive officer, said the purchase price provides a premium to common shareholders of about 12.8% over its average closing price in the last month. And David Lichtenstein, chairman and principal of Lightstone, said the acquisition furthers Lightstone's strategy of acquiring companies "with good management teams and high-quality assets in locations that we believe provide opportunities as markets recover." Prime Group had been looking at other offers since last year and had even announced a deal with Chicago-based Prime/Mansur Investment Partners, but the deal fell through and Prime/Mansur initiated a lawsuit against Prime Group.