NEW YORK, Jan. 21 /PRNewswire/ -- Boston Properties (NYSE: BXP), a
self-managed and self-advised real estate investment trust (REIT), announced
today that it has signed a binding agreement to acquire, between now and
January 2001, the leasehold interest in the remaining two development sites in
New York City's Times Square. The sites are part of the 42nd Street
Development Project, a redevelopment project initiated in 1984 by the State
and City of New York. Along with the leasehold interests, Boston Properties
will acquire the rights to receive ground rent credits on the sites. The
leasehold interests and credits will be acquired from Prudential Insurance
Company of America ("Prudential") for a total purchase price of
$312.25 million. Prudential will also retain the right to become a 33.33%
equity participant in the development ventures by contributing, upon an
election to participate, its proportionate share of the total project equity.
Boston Properties President and CEO Edward H. Linde said, "We are
delighted to be moving forward on the acquisition of two of the most
sought-after development sites in New York City, allowing us to satisfy the
demand for office space in a very tight Midtown market."
The Managing Director of the Prudential Realty Group, Brian P. Murphy,
commented, "This is a terrific transaction for Prudential, Boston Properties
and the State and City of New York. We are very excited about the future of
Times Square at the 'Crossroads of the World.'"
The two development sites are the last to be sold of the four original
sites included in Prudential's Times Square Development Project, begun more
than 12 years ago. The sites are located in the heart of Times Square
directly across from one another on the south side of 42nd Street. Site One
is the full block between Broadway and Seventh Avenue. Site Four is at the
corner of 42nd Street and Seventh Avenue. Boston Properties will be the
principal owner and developer of two office towers on the sites consisting in
the aggregate of more than 2.0 million square feet. Total development costs,
including the acquisition of both sites, will be in excess of $1.0 billion.
Construction may begin late this year.
Boston Properties, Inc. is a fully integrated, self-administered and
self-managed real estate investment trust that develops, redevelops, acquires,
manages, operates and owns a diverse portfolio of office, industrial and hotel
properties predominantly located in Greater Boston, Midtown Manhattan, Greater
Washington, D.C., San Francisco, California, Princeton/East Brunswick, New
Jersey, Richmond, Va., and Baltimore, Md. The Company is one of the largest
owners and developers of office properties in the United States.
This press release contains forward-looking statements within the meaning
of the Federal securities laws. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy. Acquisitions that are pursued by Boston Properties may not be
consummated for a variety of reasons, including a failure of the Company or
other parties to an agreement to fulfill all conditions to closing required by
the Company or such parties. Information contained in this release regarding
current and future market conditions is based on the Company's assessment of
the market and is subject to the uncertainties inherent in such an assessment.
In particular, national and regional economic conditions and the rate of new
construction and rehabilitation in a market will affect projected rents and
the cost of lease renewals.
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Edward H. Linde, President, CEO & Director,
or David G. Gaw, SVP & CFO, both of Boston Properties, Inc.,
617-859-2600; or General Info., Marianne Stewart, 212-661-8030,
or Analysts, Claire Koeneman, 312-266-7800, or Media, Judith
Sylk-Siegel, 212-661-8030, all of The Financial Relations Board
NOTE TO EDITORS: To receive Boston Properties' latest news and
corporate developments via fax at no cost, please call
800-PRO-INFO; use company code BXP. Visit the Company's web site
at http://www.bostonproperties.com. Also see
http://www.frbinc.com.
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