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Filed Pursuant to Rule 424(b)(3)
Registration No. 333-33893
CRESCENT REAL ESTATE EQUITIES COMPANY
This Supplement is part of, and should be read in conjunction with, the
Prospectus dated October 1, 1997.
RECENT DEVELOPMENTS
COMPLETED INVESTMENTS
The Company acquired the U.S. Home Building on October 15, 1997. The
acquisition of Americold Corporation and URS Logistics, Inc. by two partnerships
in which the Company indirectly owns a 40% interest was completed on October 31,
1997. Details of all such acquisitions are provided in the Company's Quarterly
Report on Form 10-Q for the quarter ended September 30, 1997, as amended on
December 5, 1997 and incorporated herein by reference. Additional information
pertaining to the acquisition of Americold Corporation and URS Logistics, Inc.
is provided in the Company's Current Report on Form 8-K dated September 28, 1997
and filed October 27, 1997, as amended on November 25, 1997 and incorporated
herein by reference.
The following briefly describes the Company's Property acquisitions since
November 8, 1997.
Energy Centre. On December 22, 1997, the Company acquired Energy Centre, a
39-story Class A office building located in the central business district of New
Orleans, Louisiana. Built in 1984, the building contains approximately 762,000
net rentable square feet. Energy Centre was acquired for approximately $75
million. Major tenants of Energy Centre include Chaffe, McCall, Phillips, Toler
& Sarpy, L.L.P., Louisiana's oldest law firm, Legg Mason and Montgomery,
Barnett, Brown, Reed, Hammond & Mintz.
Ventana Country Inn. On December 19, 1997, the Company acquired for
approximately $30 million the Ventana Country Inn, a 62-room resort hotel
located in Big Sur, California. The Ventana Country Inn is located on a 243-acre
wooded site in the foothills of the Santa Lucia Mountains overlooking the
Pacific Ocean. The purchase also includes an adjacent 72-acre undeveloped land
parcel offering the potential for single-family residential development.
Crescent Operating, Inc., pursuant to a lease with the Company, will market and
operate the resort hotel jointly with the Company's Sonoma Mission Inn & Spa.
SELLING SHAREHOLDERS
This Prospectus relates to the offer and sale from time to time of up to
1,347,088 common shares (the "Shares") of beneficial interest, par value $.01
per share (the "Common Shares"). On January 5, 1998, Canyon Ranch, Inc. ("CRI")
transferred and assigned 61,250 units of ownership interest in the Operating
Partnership to the University of Arizona Foundation. Immediately thereafter, the
University of Arizona Foundation exercised its right to exchange such units for
Common Shares on a one-for-two basis, or 122,500 Common Shares. Accordingly, the
Shares are offered by CRI, Sanjay Varma, six employees of the Company and the
University of Arizona Foundation (collectively, the "Selling Shareholders").
January 7, 1998 Prospectus dated October 1, 1997
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The following chart indicates, according to the Company's records, the
number of Common Shares beneficially owned by each Selling Shareholder prior to
the Offering and the number of Shares of each Selling Shareholder being offered
hereby:
<TABLE>
<CAPTION>
Common Shares
Beneficially Number of
Name of Owned Prior to Shares Offered
Selling Shareholder Offering(1) Hereby(5)
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<S> <C> <C>
Canyon Ranch, Inc. ......................... 1,006,858(2) 1,006,858
Sanjay Varma ............................... 239,062(3) 217,530
Six employees of the Company,
collectively ............................. 71,865(4) 200
University of Arizona Foundation............ 122,500 122,500
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Total ............................ 1,440,285 1,347,088
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</TABLE>
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(1) To the extent indicated, the number of Common Shares beneficially owned
prior to the Offering represents Units exchangeable for Common Shares,
subject to certain exceptions, on a one-for-two basis. Alternatively, the
Units are exchangeable, at the option of the Company, for cash.
(2) Represents 564,679 Units exchangeable for Common Shares.
(3) Represents (i) 217,530 Common Shares issuable upon exercise of the Option,
(ii) 19,000 Common Shares and (iii) 2,532 Common Shares issuable upon
exchange of 1,266 Units.
(4) Represents (i) an aggregate of 200 Common Shares granted to the six
employees in connection with their employment and offered hereby, (ii) an
aggregate of 16,781 additional Common Shares owned by the six employees and
(iii) an aggregate of 54,884 Common Shares issuable upon exchange of 27,442
Units owned by the six employees.
(5) Based on the number of Units and Common Shares owned as of the date hereof,
and assuming the sale of all of the Shares offered hereby, following
completion of the Offering (i) Canyon Ranch, Inc. will not own any Common
Shares or Units, (ii) Sanjay Varma will own 19,000 Common Shares and 1,266
Units exchangeable for 2,532 Common Shares, (iii) the six employees of the
Company will collectively own 16,781 Common Shares and 27,442 Units
exchangeable for 54,884 Common Shares and (iv) the University of Arizona
Foundation will not own any Common Shares or Units.
The information contained in the Prospectus dated October 1, 1997 should be
read in light of the foregoing.