August 22, 2006	Tuesday	Rajab 26, 1427

WASHINGTON, Aug 21: An arm of Morgan Stanley's banking group will acquire a US property manager, Glenborough Realty Trust, which owns office properties in Washington and California, for $1.9 billion, the companies said on Monday.

The companies announced in a statement that under the deal's terms, Morgan Stanley Real Estate will purchase all of Glenborough's outstanding common stock for $26 per share in cash.

Glenborough's board of directors has approved the takeover, but it is subject to approval by the property group's stockholders.

“Glenborough's high-quality office properties are located in some of the country's most desirable and supply-constrained office markets, such as Washington DC, and northern and southern California,” said Michael Franco, managing director of Morgan Stanley Real Estate.

Glenborough operates as an REIT, or Real Estate Investment Trust, which means that it has to hold a majority of its investments in the property market.

The company made a loss of $12.6 million in 2005 on revenues of 162.8 million.—AFP