June 28, 2017 / 10:32 AM / a year ago

Government Properties to buy First Potomac

June 28 (Reuters) - Real estate investment trust Government Properties Income Trust said on Wednesday it agreed to buy First Potomac Realty Trust in a deal valued at about $1.4 billion, including debt.

The combined company would have $4.1 billion of consolidated gross assets, Government Properties said.

First Potomac shareholders will receive $11.15 per share in cash, representing a discount of about 2 percent to the stock’s Wednesday close.

First Potomac, which had $649.5 million of total debt outstanding as of March 31, owns office and business park properties in the greater Washington, D.C. region.

Government Properties owns properties throughout the United States that are mostly leased to government tenants.

The deal is expected to close before the end of the year.

Wells Fargo Securities and Eastdil Secured acted as financial advisers to First Potomac, while Citigroup advised Government Properties. (Reporting by Ankit Ajmera in Bengaluru; Editing by Saumyadeb Chakrabarty)

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