Sullivan & Worcester Represents Government Properties Income Trust in $1.4 Billion Acquisition of First Potomac Trust
Boston, MA, June 28, 2017 - Sullivan & Worcester today announced that it represented Government Properties Income Trust (Nasdaq:GOV), a real estate investment trust primarily invested in commercial properties leased to government tenants, in its $1.4 billion acquisition of First Potomac Realty Trust (NYSE: FPO), a self-administered, self-managed real estate investment trust that focuses on owning, operating, developing and redeveloping office and business park properties in the greater Washington, D.C. region. The transaction includes cash and the repayment or assumption of FPO debt. This transaction is subject to the approval of at least a majority of FPO’s common shareholders and other customary conditions and is expected to close prior to year end 2017.
David Blackman, President and Chief Operating Officer of GOV, made the following statement:
"The acquisition of FPO enables GOV to expand its business strategy to include the acquisition, ownership and operation of office properties leased to both government and private sector tenants in the metropolitan Washington, D.C. market area. The metropolitan Washington, D.C. market area is one of the largest office markets in the U.S. and the nation’s largest beneficiary of spending by the U.S. government. Outside of the metropolitan Washington, D.C. market area, GOV will continue to focus on acquiring, owning and operating office properties that are majority leased to government tenants."
"In addition to this transaction providing GOV with new potential growth opportunities, we expect to realize approximately $11 million of annual general and administrative expense savings compared to FPO on a stand alone basis. We are also pleased that we were able to achieve an attractive per share purchase price."
Complete details of the deal are available at the company’s press release here.
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