Saturday, February 6, 2016

Brandywine completes $400M sale



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.

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