Published: 2 March 2005
The Wells Real Estate Investment Trust Inc, a public non-traded reit, has entered into an agreement to sell 27 office & industrial properties, which it owns either wholly or jointly, to Lexington Corporate Properties Trust, a New York-based reit, for $US786 million.
Wells acquired or developed the properties between 1999-2003. Most are A grade office buildings with single tenants. Wells Real Estate Funds president Leo Wells III said the properties had increased in value and their sale was an exercise in effective portfolio management.
For Lexington, it was a rare opportunity coming at a time of favourable financing. Lexington is borrowing $US558.3 million (71% gearing) on non-recourse first-mortgage loans
To finance the acquisition, Lexington has arranged to obtain $558.3 million of non-recourse first mortgage loans secured over these & 5 more properties, from JPMorgan Chase Bank, most of it at 5.2%.