EX-99.(C)(5) 4 a06-19253_1ex99dc5.htm EX-99

Exhibit (c)(5)

 

The following exhibit has been edited solely to remove the actual names of the potential bidders.

 











 

Searchable text section of graphics shown above

 


 

[LOGO]

 

DRAFT

 

Presentation to the Board of RRR

 

20-July-2006

 


 

Process Update

 

1


 

Recent Developments

 

On Monday, July 10, the Board of RRR authorized Management to explore a sale of the Company

 

•                  July 14

 

•                       Citigroup and Goldman Sachs contacted the eight potential bidders identified on the July 10 board call

 

•                       Invited Bidder K to join the process

 

•                  July 14 to current:

 

•                       Six bidders signed confidentiality agreements

 

•                       One confidentiality agreement has been dropped (Bidder G) and one confidentiality agreement is still being negotiated (Bidder E)

 

•                  July 15:

 

•                       The electronic dataroom was opened to the potential bidders

 

•                       The material was accessed immediately

 

•                  July 15 to current:

 

•                       To date, six of the eight potential bidders have done extensive due diligence

 

•                  July 19:

 

•                       Bidder A & Bidder G declined to participate further in the process

 

•                       Bidder F and Bidder I contacted Scott Rechler requesting to participate

 

•                       Bid instruction letter posted on data room. Notifies bidders that bids are due on Thursday, July 27, 2006 at 5:00PM EST

 

2


 

•                  July 20:

 

•                       Management meetings with four potential bidders:  Bidder K, Bidder C, Bidder B & SL Green

 

•                  July 21:

 

•                       Management meeting with Bidder D

 

•                       Draft Merger Agreement scheduled to be distributed to bidders

 

•                  July 27:

 

•                       Bid proposals due from bidders

 

•                  July 27 to August 3:

 

•                       Evaluation of bids and Merger Agreement

 

•                       On-going discussion with bidders

 

•                       Negotiate final terms of Merger Agreement

 

•                       Board approval and execute Merger Agreement

 

•                  August 3:

 

•                       Earnings Call

 

3


 

Summary of Process

As of July 19, 2006

 

 

 

Confi Signed

 

Management

Bidder

 

Accessed Dataroom

 

Meetings

 

 

 

 

 

Bidder A [Dropped 7/19/06]

 

Yes

 

NA

 

 

 

 

 

Bidder B

 

Yes

 

Thursday, July 20

 

 

 

 

 

Bidder C

 

Yes

 

Thursday, July 20

 

 

 

 

 

Bidder G [Dropped 7/19/06]

 

No

 

NA

 

 

 

 

 

Bidder E

 

Being Negotiated

 

Not Scheduled

 

 

 

 

 

SL Green

 

Yes

 

Thursday, July 20

 

 

 

 

 

Bidder K

 

Yes

 

Thursday, July 20

 

 

 

 

 

Bidder D

 

Yes

 

Friday, July 21

 

 

 

Confi Signed

 

Management

Others [Contacted Scott]

 

Accessed Dataroom

 

Meetings

 

 

 

 

 

Bidder I

 

No

 

NA

 

 

 

 

 

Bidder F

 

No

 

NA

 

4


 

Initial Buyer Feedback & Issues

 

•                  Questions regarding expectations for deal premium given current stock price movement

 

•                  Questions regarding whether multiple buyers may partner in bid process

 

•                  Concern that New York rents are not rolling in near term

 

•                  Questions regarding management’s involvement post-transaction

 

•                  Questions regarding management/board view of receiving cash versus equity consideration

 

•                  Resistance against relatively low implied suburban asset cap rates

 

•                  Challenges in underwriting certain assets

 

•                  Development properties

 

•                  RSVP

 

•                  Australian LPT

 

•                  Around 5% going-in cap rate

 

5


 

Relative Bidder Dataroom Activity

As of 7/19/06

 

Number of Times Logged-In

 

Average Log-In Per Participant

 

 

 

[CHART]

 

[CHART]

 

Source:  Intralinks

 

6


 

RRR Price / Volume

Since 7/10/06

 

[CHART]

 

Source:  Factset

Note:  Total returns include dividends. Office REIT Index is a market-cap weighted index including AFR, BDN, BXP, CRE, CEI, CLI, EOP, MPG, SLG, TRZ, VNO

 

7


 

Total Stock Return

Since 7/10/06

 

[CHART]

 

Source:  Factset

Note:  Total returns include dividends. Office REIT Index is a market-cap weighted index including AFR, BDN, BXP, CRE, CEI, CLI, EOP, MPG, SLG, TRZ, VNO

 

8