Macquarie Office Trust Makes Offer for Principal America Office Trust

SYDNEY-Principal Real Estate Investors Australia considering an unsolicited takeover offer for Principal America Office Trust by Macquarie Office Management Limited on behalf of Macquarie Office Trust. PREI Australia says the offer it received is as yet incomplete. Macquarie Office Management Limited says discussions are still underway and no agreements have been reached on the final terms of any proposal.Principal America Office Trust owns approximately $900 million worth of US office assets. The trust was formerly known as Lend Lease US Office Trust. In November, shareholders passed a resolution replacing Lend Lease with Principal Real Estate Investors. The resolution was proposed by the largest shareholder in the trust, Colonial First State. The proposal came six months after a Lend Lease announcement that it had contracted to sell the majority of its US real estate equity advisory to Morgan Stanley.Principal America Office Trust owns interest in 11 properties totaling 5.5 million sf. It’s interest in each asset ranges from 25% to 100%. The trust’s most significant investments include a 50% interest in the 1.1 million-sf Wachovia Financial Center in Miami, the 10 & 30 South Wacker buildings in Chicago that total 2 million sf., and; the 1 million-sf Bank One Center in Indianapolis.