Archive | Brandywine

$US3.3 billion reit merger

Published 4 October 2005


Prentiss Properties Trust will be broken up in a $US3.3 billion real estate investment trust deal announced yesterday.



Brandywine Realty Trust will acquire Prentiss through a cash & scrip deal – minus its Chicago & Detroit portfolios, for which sale was already under way – and will pass on a $US753 million portfolio to Prudential Real Estate Investors.


The deal should be completed this quarter or early 2006. On completion, Brandywine will own or manage 4.55 million m² of space, making it one of the biggest US reits. It will also manage the assets acquired by Prudential for 2 years.


Brandywine president & chief executive Gerard Sweeney said the combined company would have capitalisation of about $US5.9 billion. Total assets, either owned or under management and including joint ventures, would exceed $US7 billion.


“As we started to evaluate largescale investment opportunities, it was clear that purchasing properties in today’s investment market without a strong management support system was a risk that Brandywine was not willing to undertake,” Mr Sweeney said.


“That was the driving catalyst behind our discussion with Prentiss, where we could combine both high-quality assets with a very seasoned management team, enabling the combined company to effectively expand our respective geographic footprints.”


In Dallas, it will mean cutting the combined company’s inventory by a third within 2 years. But Mr Sweeney said the company would advance development on all Prentiss’ properties & Brandywine’s New Jersey land.


Websites: Brandywine Realty Trust


Prentiss Properties


Prudential Real Estate Investors


 


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