Highlights:
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Single portfolio transaction completes majority of Columbia’s
anticipated property disposition activity for 2015
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Transforms the remaining portfolio to 77% multi-tenant and 81%
CBD/urban infill, with nearly 50% of ALR derived from high-barrier
markets
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Reduces leverage to 32.7% on a pro forma basis, resulting in $490
million capacity available on its $500 million credit facility
ATLANTA--(BUSINESS WIRE)--
Columbia Property Trust, Inc. (NYSE:CXP) announced today the sale of 11
suburban and principally single-tenant office properties totaling 2.9
million square feet for total gross proceeds of $433.3 million to an
unnamed real estate private equity fund.
The proceeds from this sale will be used to reduce outstanding
borrowings. The Company will repay amounts outstanding on its revolving
credit facility, which was recently used to pay off a $206.5 million
loan secured by 333 Market in San Francisco, and pay off a $21.0 million
mortgage loan on one of the disposition properties. Proceeds from this
sale will also be used to pay off a $105.0 million loan secured by 100
East Pratt in Baltimore, Maryland. Proceeds from 10 of the properties
are available immediately, and the remaining proceeds are expected to be
available approximately 30 days later. The transaction is expected to
result in a net gain of approximately $17 million that will be
recognized in the Company’s third quarter 2015 results.
The Company continues to market the three remaining properties it
previously identified as expected dispositions: 1881 Campus Commons in
Reston, Virginia is projected to be completed later in the third quarter
of 2015; 800 N Fredrick Avenue in suburban Maryland is projected to be
completed by the end of the year; and 263 Shuman Boulevard in suburban
Chicago is expected to be completed in 2016.
“We had significant interest in these properties from both single-asset
and portfolio buyers,” said Nelson Mills, President and CEO of Columbia
Property Trust. “The pricing for the first 11 properties is in line with
our expectations, and we are confident that, with the sale of the three
remaining properties, total proceeds will be within our expected range
of $500 million to $600 million.
“As we’ve noted for some time, these suburban and single-tenant assets
were not part of our long-term strategy. The dispositions were a key
step in the dramatic shift of our portfolio toward multi-tenant
properties in CBD locations with a meaningful presence in high-barrier
markets. While we may dispose of other assets in the future to fund
compelling uses of capital, these 14 properties are the last of those we
identified as ‘must-sell’ in connection with our strategy.
Post-disposition, we believe Columbia is in exclusive company with other
high-barrier peers and is well-positioned to grow the value of our
portfolio.”
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Property Details
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Property Name
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Market
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ST
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1
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Acxiom
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Chicago
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IL
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2
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The Corridors III
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Chicago
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IL
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3
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Highland Landmark III
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Chicago
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IL
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4
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215 Diehl Road
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Chicago
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IL
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5
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Bannockburn Lake III
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Chicago
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IL
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6
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544 Lakeview
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Chicago
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IL
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7
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550 King Street Buildings
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Boston
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MA
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8
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Robbins Road
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Boston
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MA
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9
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1580 West Nursery Road
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Baltimore
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MD
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10
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170 Park Avenue
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N. New Jersey
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NJ
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11
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180 Park Avenue
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N. New Jersey
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NJ
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About Columbia Property Trust
One of the nation’s largest office REITs, Columbia Property Trust
invests in high-quality commercial office properties in primary markets
nationwide and has achieved an investment-grade rating from both Moody’s
and Standard & Poor’s rating services. As of June 30, 2015, Columbia
Property Trust’s portfolio consisted of 38 office properties and one
hotel, which included 55 operational buildings and comprised
approximately 16.6 million square feet located in 15 U.S. metropolitan
statistical areas (MSAs). For information about Columbia Property Trust,
visit www.ColumbiaPropertyTrust.com.
Forward-Looking Statements:
Certain statements contained in this press release other than
historical facts may be considered forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E of
the Securities Exchange Act of 1934. We intend for all such
forward-looking statements to be covered by the applicable safe harbor
provisions for forward-looking statements contained in those acts. Such
statements include, in particular, statements about our plans,
strategies, and prospects and are subject to certain risks and
uncertainties, including known and unknown risks, which could cause
actual results to differ materially from those projected or anticipated.
Therefore, such statements are not intended to be a guarantee of our
performance in future periods. Such forward-looking statements can
generally be identified by our use of forward-looking terminology such
as “may,” “will,” “expect,” “intend,” “anticipate,” “estimate,”
“believe,” “continue,” or other similar words. Readers are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. We make no representations or
warranties (express or implied) about the accuracy of any such
forward-looking statements contained in this press release, and we do
not intend to publicly update or revise any forward-looking statements,
whether as a result of new information, future events, or otherwise.
Any such forward-looking statements are subject to risks,
uncertainties, and other factors and are based on a number of
assumptions involving judgments with respect to, among other things,
future economic, competitive, and market conditions, all of which are
difficult or impossible to predict accurately. To the extent that our
assumptions differ from actual conditions, our ability to accurately
anticipate results expressed in such forward-looking statements,
including our ability to generate positive cash flow from operations,
make distributions to stockholders, and maintain the value of our real
estate properties, may be significantly hindered. See Item 1A in the
Company’s most recently filed Annual Report on Form 10-K for the year
ended December 31, 2014, for a discussion of some of the risks and
uncertainties that could cause actual results to differ materially from
those presented in our forward-looking statements. The risk factors
described in our Annual Report are not the only ones we face, but do
represent those risks and uncertainties that we believe are material to
us. Additional risks and uncertainties not currently known to us or that
we currently deem immaterial may also harm our business.
View source version on businesswire.com: http://www.businesswire.com/news/home/20150701006680/en/
for Columbia Property Trust, Inc.
Tripp Sullivan, 615-760-1104
or
Jim
Fleming, 404-465-2200
IR@columbiapropertytrust.com
Source: Columbia Property Trust, Inc.