Real estate giants bid on Archstone REIT

Sep.September 07, 2011 09:12 AM

Real estate giants the Blackstone Group, Brookfield Asset Management, Equity Residential and AvalonBay Communities have all submitted bids for real estate investment trust Archstone in recent weeks, but the offers haven’t been enough to resolve a disagreement among the owners over how to unwind Archstone, the Wall Street Journal reported.

Barclays and the estate of Lehman Brothers Holdings are in an ongoing dispute over Archstone, a $22 billion investment made at the peak of the commercial real estate boom that contributed to Lehman’s downfall. According to the Wall Street Journal, Barclays is pushing to sell the company or its assets privately whereas Lehman favors a longer-term approach: taking the company public in what would be the largest real estate initial public offering ever. Meanwhile, Bank of America, the third and final partner, has yet to decide on a favored strategy.

Barclays had hoped offers from Blackstone and the like would be so high as to convince the others to sell outright.
Equity Residential, AvalonBay, and Brookfield bid for the entire company, though none of their offers were all-cash, while Blackstone made offers only for small sections of it, sources told the Journal. [WSJ]

Related Articles

(Illustration by Daniel Castro Maia)

How much bigger can Brookfield get?

315 West 33rd Street, SL Green's Marc Holliday and Brookfield's Ric Clark (Credit: SL Green, Getty Images)

Brookfield fund buying SL Green’s 315 West 33rd Street for $447M

Brookfield Asset Management CEO Bruce Flatt

“We underwrite every investment like we’re going to hit a recession”: Brookfield CEO

Brookfield's Ric Clark (Credit: Getty Images)

“There was no quid pro quo”: Ric Clark on Brookfield’s 666 Fifth purchase, and renovation plans

Liberty View Plaza at 850 3rd Avenue and Marvin Schein (inset) (Photo by Axel Dupeux)

City lets Salmar bring office tenants to Brooklyn industrial property

Sam Zell (Credit: Studio Scrivo, iStock)

The youth are fueling Sam Zell’s outdoor home rental business

Brookfield's largest-ever $15B property fund has invested in properties from New York (666 Fifth Avenue) to Bangalore (the Leela Palace hotel) (Credit: Brookfield, Getty Images, Leela)

Real estate fundraising hits lowest level since 2013

Blackstone's Jonathan Gray and an aerial of Industry City (Credit: Getty Images and Google Maps)

Industry City gets $720M refinancing