SL Green to Buy Reckson Associates

SL Green Realty Corp., a New York City office real estate investment trust, is acquiring Reckson Associates Realty Corp., another office REIT based in Melville, N.Y., for about $6 billion, including the assumption of about $2 billion of Reckson's debt.SL Green said it will acquire all of Reckson's common stock and operating partnership units for $31.68 per stock/OPU in cash and a fixed exchange ratio of 0.10387 shares of SL Green common stock per Reckson common share and OPU. The consideration values each Reckson common share at $43.31, based on SL Green's recent closing stock price of $112 per share. Upon the closing of the merger, Reckson stockholders are expected to own about 15.2% of SL Green. In related transactions, SL Green is selling some Reckson assets to a group consisting of Reckson executives and Marathon Asset Management for $2.1 billion. The merger will boost SL Green's portfolio to 28.1 million square feet, of which 23.0 million square feet will be in Manhattan, the REIT said. Marc Holliday, chief executive officer of SL Green, said he expects the portfolio to "benefit from escalating New York City rents and occupancy trends." The REITs can be found online at http://www.slgreen.com and http://www.reckson.com.