Duke Realty Completes $1.1B SalePosted: Updated:
Indianapolis-based Duke Realty Corp. (NYSE: DRE) says it has completed a $1.1 billion suburban office portfolio sale. The previously-announced purchase was led by an affiliate of Starwood Capital Group in Connecticut.
April 2, 2015
Indianapolis, Ind. -- Duke Realty Corporation ("Duke Realty" or the "Company") (NYSE: DRE), a leading industrial and medical office property REIT, announced today that it has completed the previously announced $1.1 billion suburban office portfolio disposition to a joint venture with affiliates of Starwood Capital Group, Vanderbilt Partners and Trinity Capital Advisors.
The suburban office portfolio disposition includes all of the company's wholly-owned, in-service suburban office properties located in Nashville, Raleigh, South Florida and St. Louis. The portfolio includes approximately 6.7 million square feet across 61 buildings and 57 acres of undeveloped land. One additional office asset currently under construction in Raleigh will be sold upon completion in late 2015. Additional detail on the transaction is disclosed in a presentation posted on the investor relations portion of the Company's website dated January 28th, 2015.
"We are very pleased to report the closing of the suburban office portfolio disposition that we announced in January," said Denny Oklak, Duke Realty's Chairman and Chief Executive Officer. "With this transaction, we were able to take advantage of the currently very active and competitive investment sale environment and continue our strategy to reduce our investment in suburban office assets and increase our investment focus in state-of-the-art bulk industrial and best-in-class medical office properties. Proceeds from the sale will be used to repay debt, including the recently announced tender offer, and to fund our ongoing property development activities. The completion of this transaction leads to a further strengthening of our balance sheet along with a best in class portfolio to support steady cash flow growth for our shareholders," added Oklak.
The Company was advised by Morgan Stanley.
About Duke Realty Corporation
Duke Realty Corporation owns, maintains an interest in or has under development approximately 153.2 million rentable square feet of industrial and office assets, including medical office, in 22 major U.S. metropolitan areas. Duke Realty Corporation is publicly traded on the NYSE under the symbol DRE and is listed on the S&P MidCap 400 Index. More information about Duke Realty Corporation is available at www.dukerealty.com.
The risks included here are not exhaustive and undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to the company, its management, or persons acting on their behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.