Boston Properties buys into Skyline Holdings.

Allied Partners and Boston Properties announced that Boston Properties has acquired a significant interest in Skyline Holdings LLC, an affiliate of Allied Partners. Skyline recently signed a contract to acquire Citigroup Center in New York City from Dai-ichi Life Investment Properties Inc. Allied and Boston Properties are in the process of negotiating agreements to become 50/50 equity partners in the venture, following a preferred return to Boston Properties. The acquisition of Citigroup Center is expected to close in April 2001.

Citigroup Center is a 1.6 million SF skyline building known for its distinctive cantilevered structure and angled top. The major tenants are Citigroup, O'Melveny & Myers, Kirkland & Ellis, and AT Kearney. Boston Properties owns three office properties in Midtown Manhattan: 599 Lexington Ave., 280 Park Ave., and 875 Third Ave., and is building two towers in Times Square. The company, along with a consortium, has also recently submitted a bid to purchase the net lease of the World Trade Center.