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Columbia Property Trust Accelerates Focused Market Strategy with Sale of 18 Properties for $521.5 Million

November 05, 2013 12:00 AM

Highlights:

  • Narrows markets from 31 in 2011 to 16 today
  • Increases top 10 market concentration to 88% of annualized lease revenue
  • Central Business District (CBD) exposure increases to 50%, and multi-tenant improves to 61% of annualized lease revenue
  • Net proceeds increase available liquidity to $850 million
  • Asset recycling since 2011 now reaches $910 million of dispositions and $1.0 billion of acquisitions

ATLANTA--(BUSINESS WIRE)-- Columbia Property Trust, Inc. (the “Company”)(NYSE: CXP), one of the nation’s largest office REITs, today announced it has closed on the sale of 18 properties described below totaling approximately 4.0 million square feet in 12 markets, for gross proceeds of $521.5 million to entities of Griffin Capital Essential Asset REIT, a non-traded REIT sponsored by Griffin Capital Corporation.

The net proceeds of approximately $500 million will be used to pay down a $90 million mortgage loan on one of the properties and to reduce the Company’s outstanding borrowings on its revolving credit facility. The liquidity these proceeds provide, together with the its borrowing capacity under its revolving credit facility, is expected to fund the Company’s previously announced tender offer of Columbia’s common shares as well as future acquisitions. The 18 properties will be treated as discontinued operations on the Company’s financial statements beginning in the fourth quarter of 2013 and currently account for approximately $10 million per quarter in net operating income.

“We have been very proactive in repositioning our portfolio with a focused market strategy to invest in premier office properties in growing markets with solid fundamentals,” said Nelson Mills, President, Chief Executive Officer, and Director of Columbia Property Trust. “This transaction substantially increases our concentration in our top 10 markets, reduces our exposure to suburban markets and raises our percentage of multi-tenant properties.

“These premier office buildings have fulfilled their original purpose in providing stable income backed by long-term leases and investment-grade quality tenants, and the market interest we received certainly proved their value. The proceeds significantly increase our liquidity and enhance our ability to execute value creation and growth strategies.”

Property Details

        Property Name       Market       ST
1       2500 Windy Ridge       Atlanta       GA
2       4100 & 4300 Wildwood       Atlanta       GA
3       4200 Wildwood       Atlanta       GA
4       4241 Irwin Simpson Road       Cincinnati       OH
5       8990 Duke Boulevard       Cincinnati       OH
6       Chase Center Columbus       Columbus       OH
7       Sterling Commerce Center I - IV       Columbus       OH
8       4300 Centreway Place       Dallas       TX
9       One MacArthur Ridge       Dallas       TX
10       333 & 777 Republic Drive       Detroit       MI
11       Eagle Rock Executive Office Center IV       East Hanover       NJ
12       College Park Plaza       Indianapolis       IN
13       11200 W. Parkland Avenue       Milwaukee       WI
14       One Century Place       Nashville       TN
15       1200 Morris Drive       Philadelphia       PA
16       15815 25th Avenue West       Seattle       WA
17       16201 25th Avenue West       Seattle       WA
18       13655 Riverport Drive       St. Louis       MO
                 

Property management and leasing of each property is anticipated to transition to Griffin Capital Corporation.

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 November 5, 2013, the REIT’s $5 billion portfolio consisted of 59 operational buildings in 13 states and the District of Columbia, totaling 16.8 million square feet. For information about Columbia Property Trust, visit www.ColumbiaPropertyTrust.com.

Important Information

This press release on Form 8-K is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any securities of the Company. The full details of the Tender Offer, including complete instructions on how to tender shares, are included in the Offer to Purchase, the Letter of Transmittal and other related materials that the Company has distributed to stockholders and has filed with the SEC. Stockholders may obtain free copies of the Offer to Purchase, the Letter of Transmittal and other related materials that the Company has filed with the SEC at the SEC’s website at http://www.sec.gov or by calling Georgeson Inc., the information agent for the Tender Offer, at (877) 278-9670 (toll free). Questions and requests for assistance by retail stockholders may be directed to Georgeson Inc. at (877) 278-9670 (toll free). Questions and requests for assistance by institutional stockholders may be directed to Morgan Stanley & Co. LLC and Goldman, Sachs & Co., the Dealer Managers for the Tender Offer, at: (888) 726-2634 (Morgan Stanley toll free) or (800) 323-5678 (Goldman Sachs toll free). In addition, stockholders may obtain free copies of the Company’s filings with the SEC from the Company’s website at http://www.columbiapropertytrust.com or by directing a request to Columbia Shareholder Services, c/o DST Systems, Inc., P.O. Box 219453, Kansas City, MO 64121-9453, or by phone at (855) 347-0042 (toll free).

Forward-Looking Statement

This press release may contain 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. 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 of this news release should be aware that there are various factors that could cause actual results to differ materially from any forward-looking statements made in this release. Factors that could cause or contribute to such differences include, but are not limited to, our ability to source future acquisitions changes in general economic and business conditions, industry trends, changes in government rules and regulations (including changes in tax laws), and increases in interest rates. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.

Corporate Communications, Inc.
Tripp Sullivan, 615-324-7335
tripp.sullivan@cci-ir.com

Source: Columbia Property Trust, Inc.

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