On May 1, four months after announcing it would explore strategic alternatives, Crescent Real Estate Equities Company (NYSE: CEI) declared its mission to simplify its business model and reposition its portfolio to contain strictly office properties.

"By becoming a pure play office REIT, we will have a higher quality earnings system that will be easier to understand and to value," says John C. Goff, Crescents' vice-chairman and CEO. "We are creating a stronger growth platform based on high-quality office properties, profitable development opportunities, the prospect of value-added office acquisitions and many valuable relationships with institutional co-investors."

Crescent's letter to shareholders cites its intentions to fully reposition the portfolio by the end of 2007. Announced changes include the sale of several resort and hotel assets located in California, as well as office properties in Phoenix, Seattle and Texas totaling approximately 5.4 million square feet. The streamlined portfolio is expected to consist of approximately 22.6 million square feet.

Blackstone Enters the Public Ring On March 22, The Blackstone Group LP filed its registration statement with the Securities and Exchange Commission for an initial public offering of approximately $4 billion. At press time, Blackstone managed approximately $78.7 billion in capital for an assortment of funds, ranging from private equity to real estate and funds of hedge funds. Blackstone intends to list on the New York Stock Exchange. Blackstone is no stranger to the REIT industry, having acquired MeriStar Hospitality, Trizec Corporation and, most notably, Equity Office Properties.