Liberty Property Trust Announces Joint Venture of Comcast Center
MALVERN, Pa., April 13 -- Liberty Property Trust
(NYSE: LRY) today announced that it has entered into a joint venture with
CommerzLeasing und Immobilien AG, a wholly owned subsidiary of Commerzbank
AG, whereby Liberty has sold an 80% interest in the equity of Comcast
Center, an office tower Liberty is developing in Philadelphia,
Pennsylvania.
The transaction values the property at $505 million, and in addition
allocates approximately $10 million for closing costs and for future
refurbishment costs. In connection with the transaction, the joint venture
has obtained a $324 million forward loan commitment from Citigroup Global
Markets Realty Corp., at a rate of 6.15% assuming the loan will close in
March of 2008. Liberty will be the managing general partner of the new
Liberty/Commerz 1701 JFK Boulevard, L.P. In addition to retaining a 20%
interest, Liberty will receive leasing and property management fees, as
well as a possible promoted interest if certain return thresholds are met.
The development of Comcast Center is on schedule for a phased occupancy
beginning in late 2007. The property is currently 73% pre-leased to four
tenants. Comcast Corporation has leased 873,000 square feet of the
1,250,000- square-foot project. Under the terms of the joint venture,
Liberty is obligated to complete development of the building, the cost of
which is approximately $472 million (including the above-referenced
refurbishment costs), and also complete the initial leasing of the
property.
"These two transactions complete the planned recapitalization of
Comcast Center, reducing Liberty's capital risk while allowing us to
continue to bring to bear our full complement of development, leasing and
operation skills," said Bill Hankowsky, Liberty's chief executive officer.
"We are very pleased to have CommerzLeasing und Immobilien AG join us as a
partner in this exciting project. This capitalization will allow Liberty to
direct our capital to additional value-creating projects."
Eastdil Secured acted as advisor to Liberty in the transaction. Real
Estate Capital Partners represented CommerzLeasing und Immobilien AG as its
U.S. real estate advisor.
Liberty Property Trust (NYSE: LRY) is a leader in commercial real
estate, serving customers in the United States and United Kingdom, through
the development, acquisition, ownership and management of superior office
and industrial properties. Liberty's 64-million-square-foot portfolio
includes more than 700 properties which provide office, distribution and
light manufacturing facilities to 2,100 tenants. For more information on
the company and its properties, please see http://www.libertyproperty.com.
CommerzLeasing und Immobilien AG has presently a real estate portfolio
of approximately $27 billion under management. Investments of
CommerzLeasing und Immobilien AG in North America amount to approximately
3.1 million square feet of office and retail space. Please see
http://www.commerzleasing.de for more information.
SOURCE Liberty Property Trust
Web Site: http://www.commerzleasing.de
http://www.libertyproperty.com
