Brandywine Realty Trust has completed a nearly $400 million
sale of 58 office properties that essentially finishes a multi-year effort to
exit certain markets that don’t fit into its overall strategy to focus on urban
areas and town centers.
In a complicated transaction that one analyst called
“byzantine,” Brandywine (NYSE:BDN) said that yesterday it wrapped up a series
of related transactions with affiliates of Och Ziff Capital Management Group
involving the $398.1 million sale of those properties. The portfolio totaled
3.9 million square feet and it was 91.4 percent occupied at the time of the
transaction.
Brandywine Realty Trust last year sold the Bay Colony
office part in Wayne, Pa.
The sale involved 10 buildings totaling 557,144 square
feet in New Jersey, 11 buildings totaling 612,738 square feet in Pennsylvania
as well as properties in Northern Virginia and Richmond, Va. A list of
buildings involved in the Och-Ziff sale was not available.
The transaction was structured so that it involved: the
sale of Brandywine's fee interests in a portfolio of land to an affiliate of
Och-Ziff totaling $188.1 million; and the sale of leasehold interests in the
portfolio to a newly formed Och-Ziff joint venture in which an affiliate of
Brandywine kept a 50 percent stake.
Between sales that Brandywine executed last year as well
as this one, the company has been involved in $1.1 billion in transactions and
has “substantially completed our multi-year portfolio repositioning strategy,”
the company said in a statement.
Those overall transactions include the $354 million sale
of Cira Square, and the former U.S. Post Office building it redeveloped next to
30th Street Station in Philadelphia. That deal is expected to close this month.
Source: Philadelphia
Business Journal
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