BRE Properties Sells $22.7 Million of Non-Core Properties; Sales Bring Two-Year Disposition Program to Effective Completion.SAN FRANCISCO--(BUSINESS WIRE)--Oct. 3, 1997--Bringing its non-core asset disposition program to virtual completion in 24 months, BRE (Business Rules Engine) Software that automates policies and procedures within an organization, whether legal, internal or operational. The use of a rules engine (BRE) requires placing the company rules in an external repository that can be easily reviewed rather than Properties, Inc. (NYSE NYSE See: New York Stock Exchange :BRE) has sold two California properties for an all-cash purchase price of approximately $22.7 million. The sales represent BRE's announced strategy to dispose of To determine the fate of; to exercise the power of control over; to fix the condition, application, employment, etc. of; to direct or assign for a use. See also: Dispose non-core assets and reinvest the proceeds into multifamily properties in key growth markets of the Western United States Noun 1. western United States - the region of the United States lying to the west of the Mississippi River West Santa Fe Trail - a trail that extends from Missouri to New Mexico; an important route for settlers moving west in the 19th century . BRE sold the 169,000 s.f. El Camino shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into , located in the Southern California community of Woodland Hills, to a privately held trust for $17,025,000. At the time of sale, El Camino was 98% leased and included an 11,000 s.f. pad for additional development. BRE marketed the property directly and received bids from 15 prospective buyers. The sale price represented an 8% capitalization rate Capitalization Rate According to the Appraisal Institute, it is a method used to convert an estimate of a single year's income expectancy into an indication of value in one direct step, by dividing the income estimate by an appropriate rate. to BRE. In a separate transaction, BRE sold the 41,000 s.f. Skypark Professional Building, located in the Southern California city of Torrance, to a limited partnership for $5,650,000. The sale price represented a 10% capitalization rate to BRE. Over the last two years, the company has redeployed 27 such non-strategic assets with total sales proceeds of approximately $230 million. "An important component of our strategic plan for creating shareholder value has been the orderly disposition of our non-apartment properties," said BRE's president and chief executive officer Frank C. McDowell. The roughly $20 million in non-apartment assets that remain in BRE's portfolio will be sold on an opportunistic basis over the coming quarters. "In the aggregate, the non-core sales program has continued to sharpen our focus on BRE's demonstrated operating strengths in the ownership and management of multifamily communities," said McDowell. Earlier this week, BRE Properties announced a $600 million transaction in which it will acquire the assets and operations of Trammell Crow Residential in the Western United States. The business combination is expected to close in November, 1997 and will expand BRE's multifamily portfolio to more than 21,000 apartment homes in 12 major markets of the West and expand BRE's operations to include development, construction and third-party management capabilities. BRE Properties, Inc., headquartered in San Francisco, is a self-administered, self-managed and fully integrated equity real estate investment trust focusing on the acquisition and management of multifamily properties in the Western United States. Today, the Company owns 56 apartment communities totaling 13,543 units in nine major markets in California, Arizona, Washington, Oregon and Nevada. Additional information about BRE can be found on the company's web site (http://breproperties.com). -0- "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for the historical information contained herein, this news release contains forward-looking statements regarding Company and property performance, and is based on the Company's current expectations and judgment. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, competitive factors specific to markets in which BRE operates, legislative or other regulatory decisions, future interest rate levels or capital markets conditions. The Company assumes no liability to update this information. For more details, please refer to the Company's SEC filings, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and quarterly reports on Form 10-Q Form 10-Q See 10-Q. . CONTACT: BRE Properties, Inc. Lauren L. Barr, 415/445-6523 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion