Morgan Stanley Buying Glenborough

Morgan Stanley Real Estate is acquiring Glenborough Realty Trust, a San Mateo, Calif.-based office real estate investment trust, in a transaction valued at about $1.9 billion.The acquisition price includes $26 per Glenborough common share in cash, the repayment or assumption of Glenborough's existing debt, and the redemption of its convertible preferred stock, Morgan Stanley Real Estate reported. The price per share represents a 15.2% premium over the Glenborough stock's 30-day average closing price through Aug. 18, according to Morgan Stanley. The Glenborough portfolio consists of 45 properties encompassing approximately 8 million square feet. Michael Franco, a managing director at Morgan Stanley Real Estate, noted that the REIT's "high-quality office properties are located in some of the country's most desirable and supply-constrained office markets, such as Washington, D.C., and Northern and Southern California." The merger is expected to be completed during the fourth quarter.