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Sunday, 12 August 2007

Mission West Deal Victim of Capital Market Turmoil

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Mission West Properties Inc., which in July announced that it was in talks to be acquired by a private equity fund in a deal valued at $1.8 billion, said it was "unlikely" to close a deal with that prospective buyer because of the "withdrawal of their primary and secondary lenders from the market."

The Cupertino, Calif., REIT said it has since notified three other potential investors who wouldn't be subject to external financing conditions. It is in talks with those investors, who are now conducting due diligence on the company, to see if they can meet Mission West's hoped-for price.

Although the company had never disclosed the prospective buyer's identity, it has been widely believed to be Starwood Capital Group.

In an announcement early this morning, Mission West said the prospective buyer had completed due diligence and agreed to terms of an agreement, but its lender, which it described as "one of the top five U.S. banks," decided to back away from a previously agreed-upon financing package. Mission West said, "The buyer has acted in good faith and made every effort to find alternative solutions, but, in this very difficult debt market, has been unable to do so."

Mission West said that in the meantime, it was continuing to run its business in a normal manner and said it expected profits and revenue to climb for the remainder of this year and next year as new leases with higher rents are signed.

The company manages 110 research and development properties in the Silicon Valley region with 7.8 million square feet.

Comments? E-mail Orest Mandzy or call him at (267) 247-0112, Ext. 211.


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Additional Info

  • Syndicate to Realpoint: No
  • Subject: Mergers & Acquisitions (M&A)
  • Company: Monmouth Real Estate Investment Corp.
  • Valuation: More than $150 million
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Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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