CalEast Industrial Investors LLC, a real estate investment group, has agreed to buy CenterPoint Properties Trust (NYSE:CNT) for $50 per share in cash according to a CenterPoint press release. CalEast will pay about $3.4 billion, including the assumption of CenterPoint's debt and preferred stock.
CenterPoint is a publicly-traded real estate investment trust (REIT) and the largest industrial property company in the 1.4-billion-square-foot Chicago regional market. CalEast is a leading investor in logistics warehouse and related real estate whose members include CalPERS and LaSalle. LaSalle, the investment management business of Jones Lang LaSalle (NYSE:JLL), serves as the managing member of CalEast. Since 1999, CenterPoint and CalEast have partnered in a joint venture known as CenterPoint Venture LLC, which acquires, develops, manages and sells industrial property.
"This transaction maximizes value for shareholders as an all cash sale with no financing contingency," CenterPoint CEO Mike Mullen said in a statement. "The price achieved reflects the significant value of the operating platform that we have created."
CenterPoint is being advised by Kirkland & Ellis LLP. The deal team is led by partners Carter W. Emerson (corporate) and Stephen G. Tomlinson (real estate). Other members of the team include: partners Dennis M. Myers, Carol Anne Huff and associate Ryan Kilkenney (corporate); partner Robert T. Buday and associate Ryan McCrate (real estate); and partner Donald E. Rocap and associate Russell S. Light (tax).
Kirkland & Ellis LLP is a 1,100-attorney law firm representing global clients in complex corporate, restructuring, tax, litigation, dispute resolution and arbitration, and intellectual property and technology matters. The Firm has offices in Chicago, London, Los Angeles, Munich, New York, San Francisco and Washington, D.C.