BRE Properties sells vacant industrial property; Will use proceeds in tax-deferred exchange acquisition of multifamily property.SAN FRANCISCO--(BUSINESS WIRE)--Nov. 1, 1995--BRE Properties Inc. (NYSE NYSE See: New York Stock Exchange :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 ) said it has sold a vacant, 50,000 square foot light industrial property in Irvine, Calif., for $4 million. The proceeds will be used as part of a tax-deferred exchange in the purchase of a multifamily property. Frank C. McDowell, BRE's president and chief executive officer, said, "This sale reflects our stated commitment to complete an expeditious and orderly disposition of the remaining light industrial properties in our portfolio. In line with our strategic plan, we will redeploy the proceeds into additional multifamily properties." In September, BRE announced the sale of a 358,000 square foot warehouse in Pomona, Calif., and the concurrent purchase of a 240 unit apartment community near Phoenix. Since July 31, BRE has reduced its industrial property portfolio by 44% on a square foot basis and by 28% on a book basis. McDowell said, "Our sales strategy focused first on those non-core assets which represented a drag on cash flow. While the Pomona and Irvine buildings had not generated rental income for the last year, they continued to be burdened by related operating expenses. The sale of these two buildings, and the reinvestment of the proceeds, should add an immediate 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. to funds from operations Funds From Operations (FFO) Used by real estate and other investment trusts to define the cash flow from trust operations; earnings with depreciation and amortization added back. ." For financial statement purposes, BRE recorded a loss of $800,000 on the sale of the Irvine building, which had been acquired in 1987 as part of a tax-deferred exchange under Section 1031 of the Internal Revenue code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. . On Oct. 11, 1995, BRE Properties and Real Estate Investment Trust of California (NYSE:RCT) announced the execution of a definitive agreement in which the two companies will be merged, forming one of the largest multifamily real estate investment trusts in 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 Properties is a self-administered equity real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) which primarily owns and operates apartment communities in the Western United States. BRE has ownership interest in 8,794 apartment units in eight defined markets in California, Arizona, Washington and Oregon. CONTACT: BRE Properties, Inc. Lauren L. Barr, 415/445-6523 or Healy Partners & Co. Maury Healy, 415/546-6166 |
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