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Calpers Unit to Buy Cabot Shares

October 29, 2001

SACRAMENTO, Calif. (AP) _ A real estate investment company owned by the California Public Employees Retirement System has offered to buy all common shares of Boston-based Cabot Industrial Trust for $1.1 billion.

CalWest Industrial Properties LLC, a joint venture between Calpers and its real estate advisers RREEF, will also assume about $900 million in debt in the deal announced Monday.

In September, Cabot’s properties were estimated to be worth $1.8 billion.

Its 372 properties include warehouses, distribution centers and other industrial sites, in 19 metropolitan areas throughout the United States, with Chicago, Dallas and Los Angeles having the most properties, said Calpers spokesman Brad Pacheco.

CalWest expects to close the transaction in December, pending approval by Cabot shareholders.

Under the terms of the offer, CalWest will pay $24 a share for Cabot’s common shares. The offer represents a 20 percent premium to Cabot’s closing share price on Friday, said RREEF spokeswoman Cindy Talmadge.

In trading Monday on the New York Stock Exchange, Cabot shares rose $3.86 to $23.81.

Calpers, the nation’s largest public pension fund, currently has $12.4 billion in real estate holdings, Pacheco said.

Calpers has assets totaling about $151 billion. The system provides retirement and health benefits to more than 1.2 million state and local public agency employees and their families.

RREEF is a real estate adviser to pension funds with $15.1 billion in assets under management. The firm’s holdings include industrial, office, retail and apartment properties.

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On the Net:

CalPERS: http://www.calpers.ca.gov

Cabot Industrial Trust: http://www.cabottrust.com

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