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REAL ESTATE INSIDER

First Potomac Realty Trust sells for $1.4B

Massachusetts-based Government Properties Income Trust has agreed to purchase Bethesda-based real estate investment trust First Potomac Realty Trust for $1.4 billion.

The deal includes assuming First Potomac Realty Trust’s debt in addition to the purchase price. Shareholders will receive $11.15 in cash per share. That’s roughly a 9 percent premium on the firm’s 30-day volume weighted average price at the end of trading on April 24 when reports of a potential sale were reported in the news media.

“The Board of Trustees conducted a thoughtful and comprehensive review of strategic alternatives and we are pleased to reach this agreement with GOV to maximize value for shareholders. Over the last 18 months we have worked diligently to refine the Company’s portfolio, strengthen the balance sheet, and enhance First Potomac’s corporate governance. This transaction and the attractive value that shareholders will receive demonstrates the successful execution of these efforts and is a testament to the dedication of First Potomac’s employees,” First Potomac Realty Trust CEO Robert Milkovich said in a statement.

First Potomac Realty Trust’s board has approved and recommended the merger to shareholders who must approve the deal at a special meeting.

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