Brandywine Realty Trust BDN announced the divestiture of five office properties and a 1.6 acre development site for $395.5 million. The sale of 5 office properties, which are presently 82% leased, covering an area of 1,216,800 rentable square feet is likely to fetch $389.0 million, or $320 per square foot. The move is in sync with Brandywine Realty’s strategy of augmenting financial capability through accelerated divestitures.
Brandywine Realty is engaged in acquiring, developing, redeveloping, leasing and managing suburban office and industrial properties. Under this divestiture program, the Radnor, PA-based real estate investment trust (“REIT”) has inked a deal to sell its interest in Cira Square in the University City submarket of Philadelphia, PA for $354 million. Subject to the fulfillment of certain customary closing conditions, the disposition of the 862,700 square feet and fully-leased property is likely to be completed in first-quarter 2016.
Also, the REIT divested 3 Carlsbad, CA-based office properties for $30.4 million and the King of Prussia, PA-based flex/office property for $4.6 million. Additionally, Brandywine Realty sold a Wilmington, DE-based 1.6 acre development site for $6.5 million.
All these transactions are anticipated to fetch a net gain of around $96.7 million. Moreover, these deals support the perceived strategies of Brandywine Realty to pre-fund its development pipeline apart from bracing up its finances.
Brandywine Realty currently carries a Zacks Rank #3 (Hold).
Investors interested in the REIT space may consider stocks like Hersha Hospitality Trust HT, Getty Realty Corp. GTY and Mack-Cali Realty Corp. CLI All three stocks sport a Zacks Rank #1 (Strong Buy).
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