Boston Properties' enters joint venture.

Boston Properties, Inc. and H. Carl McCall, sole trustee of the New York State Common Retirement Fund (NYSCRF) announced that they have entered into a joint venture agreement. The initial term of the joint venture agreement is the earlier of three years or until NYSCRF's equity commitment of $270 million is met. NYSCRF may increase its financial commitment prior to the end of the third year. During the term of the agreement, NYSCRF has the right to participate in Boston Properties' future acquisition opportunities and those development projects that Boston Properties pursues with an institutional partner.

NYSCRF has acquired interests in two Boston Properties assets through the joint venture: a 49 percent interest in Metropolitan Square, a 582,194 square-foot multi-tenant Class A office building in Washington, DC, and a 75 percent interest in 140 Kendrick Street in Needham, Massachusetts, a 381,000 square-foot build-to-suit development for Parametric Technology that is expected to be delivered in the first quarter 2001. Boston Properties received cash proceeds of approximately $47 million and NYSCRF assumed approximately $126 million of debt.

H. Carl McCall, sole trustee of the New York State Common Retirement Fund, manages the pension funds of 880,000 New York State and local public employees. The fund is valued at approximately $127 billion in assets. This agreement represents the first joint venture between the two firms.

J.P. Morgan Investment Management acted as sole advisor to NYSCPF in connection with the joint venture investment program.

H. Carl McCall, sole trustee of the Common Retirement Fund said, "This partnership represents a tremendous opportunity for our investment portfolio. We look forward to our ongoing relationship with Boston Properties."