NEW YORK, Jan. 15 /PRNewswire/ -- SL Green Realty Corp. (NYSE: SLG)
announced today that it will discontinue redevelopment of 636 11th Avenue, and
will not purchase the 469,000 square foot industrial and warehouse property.
Termination of the purchase agreement signed last June will result in a
non-FFO charge of approximately $1.065 million or $0.04 per share. SL Green
will continue to own a $10.9 million first mortgage which is fully secured.
Commenting on the Company's decision not to proceed, Stephen Green,
Chairman and Chief Executive Officer, said, "SL Green's normal business cycle
involves buying Manhattan properties, and then improving yields through
redevelopment, and repositioning. At 636 Eleventh Avenue, our engineering and
design development estimates told us that the costs of redevelopment would
limit our ability to produce the yield requirements we feel are needed to
undertake the risks of a full redevelopment, relative to competing returns
available on income producing alternatives." Mr. Green said management will
redeploy capital earmarked for this acquisition to near term, higher yielding
alternatives.
SL Green Realty is a self-administered and self-managed real estate
investment trust ("REIT") that acquires, owns and manages a Class B Manhattan
office portfolio. Its portfolio consists of 19 properties, comprising
approximately 7.2 million rentable square feet.
This press release contains forward-looking information based upon the
Company's current best judgment and expectations. Actual results could vary
from those presented herein. The risks and uncertainties associated with the
forward-looking information include the strength of the commercial office and
industrial real estate markets in which the Company operates, competitive
market conditions, general economic growth, interest rates and capital market
conditions. For further information, please refer to the Company's filings
with the Securities and Exchange Commission.
SOURCE SL Green Realty Corp.
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Related links:
http://www.slgreen.com
CONTACT:
Stephen Green, Chairman & CEO, or David
Nettina, President & COO, of SL Green Realty Corp., 212-594-2700;
or General, Paula Schwartz & Michael Lawson, Analysts, Pamela
King, or Media, Judith Sylk-Siegel, of The Financial Relations
Board, 212-661-8030
NOTE TO EDITORS: To receive SLG's latest news release and other
corporate documents via FAX -- no cost -- dial 1-800-PRO-INFO.
Use company's symbol, SLG. Visit SL Green's web site at
http://www.slgreen.com, or SL Green's pages at http://www.frbinc.com
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