Morgan Stanley Buying Texas REIT

Continuing the wave of real estate investment trust merger-and-acquisition deals, Crescent Real Estate Equities Co., a Fort Worth, Texas-based REIT, is being acquired by Morgan Stanley Real Estate for a total price of about $6.5 billion.The price includes $22.80 per Crescent share and the assumption of about $3.1 billion of the REIT's debt, Crescent said. In addition, Crescent's preferred shares are to be redeemed by Morgan Stanley RE. The purchase price makes for a 12% premium over the Crescent stock's recent average closing price on the New York Stock Exchange, according to the REIT. The Crescent portfolio consists of 70 office buildings totaling 27 million square feet, as well as some resort holdings. The transaction is expected to close in the third quarter.