Lehman Brothers Holdings Inc agreed to sell property group Archstone to two real estate investment trusts for about $6.5 billion, taking advantage of a strong market for apartments and marking an end to a 2007 gamble that helped push the investment bank into bankruptcy.The buyers, Equity Residential and AvalonBay Communities Inc, will split the assets 60-40 and will also take on Archstone's debt, for a total transaction value of $16 billion.Lehman collapsed at the height of the financial crisis in 2008, in part because of soured real estate bets, including the $23.7 billion leveraged takeover of Archstone. The firm filed for bankruptcy and has been liquidating assets to pay back creditors, who are still owed more than $30 billion.Archstone, one of the largest owners of U.S. apartments, has a large portfolio of properties in metropolitan areas, where apartment buildings have been pricey and difficult to come by.
AvalonBay Communities, Inc. (AvalonBay) is a real estate investment trust (REIT). Shares of AVB traded higher by 0.32% or $0.41/share to $128.95. In the past year, the shares have traded as low as $117.97 and as high as $151.23. On average, 603745 shares of AVB exchange hands on a given day and today's volume is recorded at 520958.
Equity Residential (EQR) is a real estate investment trust (REIT). Shares of EQR fell by 0.06% or $-0.03/share to $54.43. In the past year, the shares have traded as low as $52.39 and as high as $65.72. On average, 1624860 shares of EQR exchange hands on a given day and today's volume is recorded at 1496174.
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