US - CalWest, the joint venture between real estate investment manager RREEF and the $151bn California Public Employees' Retirement System (CalPERS), has acquired Cabot Industrial Trust, a Boston based owner and operator of industrial properties, for $2.1bn.
Under the terms of the agreement, CalPERS and RREEF will pay $24 a share for all outstanding Cabot shares. The all cash transaction is expected to be completed in December and represents a 20% premium on Cabot share price on Friday, October 26, 2001.
Cabot is a publicly held real estate investment trust with $1.8bn in total assets under management. The firm's investment strategy is focused exclusively on the industrial property sector where it seeks to own high quality, functional buildings. Currently, the firm owns 372 warehouse, distribution or workspace properties in 19 principal markets throughout the US.
Charles Leitner, principal at RREEF, said of the deal: Cabot has created a high quality industrial property portfolio concentrated in several of the best markets in the country. We see excellent opportunities in the industrial property sector, and by acquiring Cabot we are able to complete one of the largest acquisitions ever in that sector. Over the years RREEF has worked with Cabot on several occasions and we have found that we share similar standards for quality and service.
By Geoffrey Ho
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