M
CB Real Estate has increased its bid for Whitestone REIT to $1.45 billion, including assumed debt, in a move to take control of the Houston-based real estate investment trust. The Baltimore-based company is offering $15 per share, or around $751 million in cash, and will assume approximately $677 million of Whitestone's debt. This brings the total value of the offer to nearly $1.5 billion.

    MCB has received a letter of confidence from Wells Fargo to secure financing for the takeover. The new bid is higher than MCB's previous offer of $14 per share, which was rejected by Whitestone earlier this summer. However, Whitestone's stock price rose from $13.47 on Tuesday to $14.34 on Wednesday after MCB announced its increased offer.

    As the third-largest shareholder and largest actively managed shareholder of Whitestone, MCB is committed to pursuing a transaction that maximizes value for all owners. P. David Bramble, co-founder and managing partner of MCB, stated that they are ready to complete due diligence and execute a definitive agreement expeditiously.

    Whitestone's retail-centric portfolio includes 57 properties across Arizona and Texas with a combined 5.1 million square feet of leasable area as of June. The company has not yet responded to the new offer, while MCB is seeking to acquire Whitestone following a failed attempt by Erez Asset Management Chairman Bruce Schanzer to join the REIT's board earlier this year.

    MCB claims its offer represents a 61.8 percent premium to Whitestone's share price preceding a rumored takeover proposal made by Fortress Investment Group last fall.