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...Across late 2007 and into 2008, markets worried about the quality of Lehman’s assets (most prominent was the $23.7bn leveraged buyout of a large portfolio of apartment buildings – Archstone – which was ultimately...
...It invested heavily in both property equity and in loans to SunCal, a Californian developer, and in Archstone-Smith, a property investment trust with upmarket apartment buildings across the country....
...Archstone had revenues of $280.8m in the three months to the end of September, up 7.8 per cent compared with the same period a year ago....
...His departure was prompted in part by the completion of the deal to sell Archstone properties as part of the liquidation of Lehman Brothers....
...Equity Residential will receive 60 per cent of Archstone’s assets and liabilities, including 23,110 apartments....
...(FT Alphaville)(Financial Times) “Lehman Brothers has agreed to sell Archstone, the apartment business it bought at the height of the US real estate bubble, to Equity Residential and AvalonBay Communities...
...(Bloomberg) ResCap creditors target cash from Ally asset sales: “A group of creditors owed billions of dollars by Ally Financial Inc.’s mortgage subsidiary wants cash from a string of asset sales before...
...That deal valued Archstone at about $16bn including debt. Equity, headed by Sam Zell, is a competitor to Archstone, which owns more than 50,000 apartments in the US and Germany....
...Lehman is locked in a court battle with Bank of America, Barclays and Equity Residential over control of Archstone, and has been shopping the banks since last year....
...Archstone, a real estate company owned by Lehman Brothers Holdings, registered a placeholder filing for $100m in August but may seek to raise many times more than that in a potential offering....
...These efforts include wresting full ownership of Archstone, the property management group, from co-owners Bank of America and Barclays....
...That would value Archstone at some $16bn, including debt....
...BofA owns 28 per cent of Archstone, while Barclays has 25 per cent....
...But the estate said on Monday that it “believes better alternatives exist for maximising value”, such as taking Archstone public, and that its stake in Archstone is worth $1bn more than the $5bn value implied...
...The estate has repeatedly clashed with Bank of America and Barclays about how to unwind the group’s holding in Archstone....
...The estate could scupper a plan to sell Archstone to Equity Residential because of concerns about its valuation, the FT reports....
...The Lehman Brothers estate is pushing ahead with plans to sell or list Archstone, the apartment company that it took private for $22bn near the zenith of the property boom, even as market ructions complicate...
...Take Lehman Brothers’ $22bn acquisition of Archstone, the real estate group, in 2007. Lehman collapsed less than a year later. Archstone is now valued at about $5bn....
...Archstone has sold assets since 2007, making it hard to put a value on its portfolio....
...headlines from the FT and other UK media:* From The FT, - SAP buys SuccessFactors for $3.4bn cash, in an effort to make itself a cloud powerhouse - Equity Residential to take 26.5% stake in Archstone...
...AvalonBay Communications , the property management group, was up 0.1 per cent to $125.67, after it was named as a possible buyer of rival Archstone, still owned by the bankrupt Lehman Brothers estate....
...Lehman’s bankruptcy managers, the restructuring firm Alvarez & Marsal, presented a plan earlier this year to pay out $60bn against roughly $320bn in claims after selling assets such as the Archstone property...
...Lehman had acquired the group in a $24bn leveraged buy-out in 2007, and its bankruptcy left Archstone in a precarious position....
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