$22B Archstone-Smith buyout closes

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The joint venture led by Tishman Speyer and Lehman Brothers affiliates closed on its $22.2 billion acquisition of Archstone-Smith Trust, a real estate investment trust, after the deadline for the buyout was extended to October. Fannie Mae and Freddie Mac helped finance the deal, with the former purchasing a $7.1 billion credit facility, secured by 105 multifamily properties, and the latter executing a $1.8 billion structured financing of over 30 multifamily properties nationwide. Tishman Speyer and Lehman provided $500 million in equity for the deal. Archstone-Smith shareholders will receive $60.75 per share in cash and the company is seeking to delist its shares and become a private entity.