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 â€“ minus its Chicago & Detroit portfolios, for which sale was already under way â€“ 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 mÂ² 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