Barclays Capital, leading global investment bank, has had a major feat in Dallas, large commercial and industrial city in northeastern Texas located in the heart of the northern Texas oil fields, as it has taken possession of Fort Worth-based Crescent Real Estate Equities Limited Partnership.
It has been learnt that Crescent has stakes in 36 office buildings all over US, including Dallas’ Crescent complex in Uptown and the Trammell Crow Center and Fountain Place towers downtown. How did it the acquisition happen then? It has come to the knowledge that Barclays assumed rights of the Crescent assets once a unit of Morgan Stanley Real Estate was unable to meet debt payments on the properties. On the word of Barclays Capital, it has formed a joint venture with former Crescent vice chairman John C. Goff so as to operate and own the real estate.
“Given his extensive knowledge of the Crescent portfolio, John is well suited to manage the company going forward,” Barclays executive Haejin Baek said in a statement.
It has also been learnt that Wall Street firm Morgan Stanley was instrumental in paying the amount of $6.5 billion two years ago to pay money for Crescent. Nevertheless the investor was unable to meet $2 billion in debt payments due to Barclay’s this month. Morgan Stanley had already taken hundreds of millions of dollars in value write-downs on the Crescent properties.
But is must be stated that Crescent doesn’t have all of the ownership in its impressive Dallas buildings. In the year 2004, it sold a 60 percent stake in the Crescent complex to a JPMorgan Chase & Co. subsidiary. JPMorgan Chase also bought a 76 percent share of downtown’s Trammell Crow Center and Fountain Place.
Barclays Capital happens to be a leading global investment bank and is the investment banking division of Barclays plc which has a balance sheet of over £1.2 trillion (2008 BARCAP figures). Barclays Capital provides financing and risk management services to large companies, institutions and government clients. It is a primary dealer in U.S. Treasury securities and various European Government bonds.
0 Responses
Stay in touch with the conversation, subscribe to the RSS feed for comments on this post.