Macquarie Office Management is buying the Principal America Office Trust, consisting of $900 million in U.S. real estate that Principal acquired from Lend Lease in November.
This deal, taken together with this week's purchase of an interest in private equity real estate firm Ochtar, makes Sydney-based Macquarie a more significant player in the U.S. real estate market. Principal Real Estate Investors will remain the real estate investment manager and adviser for the U.S. real estate portfolio, said Alex Doughty, communications manager for Macquarie Holdings, which owns the real estate investment firm.
Macquarie Office Trust is offering 1.06 of its units and 10 cents per Principal America unit in cash, for a total of A$1.37 per unit. In all, the deal is valued at A$850 million (US$594 million). Subject to the findings by an independent expert that the offer is fair and reasonable, Principal's directors intend to recommend that the Principal America Office Trust shareholders accept Macquarie's offer, according to a written statement.
