WASHINGTON, April 6 /PRNewswire-FirstCall/ -- CarrAmerica Realty
Corporation (NYSE: CRE) today announced that it has entered into a joint
venture with RREEF, a subsidiary of Deutsche Bank AG (NYSE: DB), to own
CarrAmerica Corporate Center, an approximately 1.0 million square foot office
property located in Pleasanton, California. The property was valued at $197.3
million for the purpose of the venture. CarrAmerica received approximately
$154 million in net proceeds in connection with its sale of an 81% interest in
the property. In addition to retaining a 19% ownership interest, CarrAmerica
will continue to manage and oversee leasing of the property.
(Logo: http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO )
Purchased in March 1996, CarrAmerica Corporate Center is currently 85%
leased. The Company will record a gain of approximately $77 million in
connection with the sale. The gain on the partial sale of this interest was
not included in the Company's previously announced earnings per share guidance
for 2005. The gain on the sale had no impact on funds from operations.
CarrAmerica Managing Director for Northern California, Christopher
Peatross, commented, "The sale of our majority interest in CarrAmerica
Corporate Center allows us to capture value in this property and gives us an
opportunity to reallocate this capital in the San Francisco Bay Area as well
as our other markets. Our strong belief in the continued success of
CarrAmerica Corporate Center made it an easy decision to stay in the asset."
Mr. Peatross added, "CarrAmerica is very pleased about its new joint venture
relationship with RREEF and looks forward to working with them to enhance
their investment."
CarrAmerica Corporate Center is comprised of seven buildings -- six office
buildings and a seven-room conference center -- totaling 1,044,679 million
square feet. Centrally positioned in Hacienda Business Park, within the
foothills of the Pleasanton-Livermore Valley, the property offers convenient
access to I-580 and I-680, the Bay Area Rapid Transit (BART) and an abundance
of major hotels and retail.
In Northern California, CarrAmerica owns, directly or through joint
ventures, interests in 85 office and R&D buildings containing approximately
6.3 million square feet.
RREEF, a leading US based real estate investment manager, is a division of
DB Real Estate, the real estate investment management group of Deutsche Asset
Management. RREEF manages $20.8 billion in pension fund real estate
investments for over 300 corporate, public and international clients. Its
activities include private and public market equity investments ranging from
core investments to higher return/higher risk holdings, including development.
RREEF has 119 property management offices nationwide and property acquisitions
offices in San Francisco, Chicago and New York.
CarrAmerica owns, develops and operates office properties in 12 markets
throughout the United States. The company has become one of America's leading
office workplace companies by meeting the rapidly changing needs of its
customers with superior service, a large portfolio of quality office
properties and extraordinary development capabilities. Currently, CarrAmerica
and its affiliates own, directly or through joint ventures, interests in a
portfolio of 286 operating office properties, totaling over 26 million square
feet. CarrAmerica's markets include Austin, Chicago, Dallas, Denver, Los
Angeles, Orange County, Portland, Salt Lake City, San Diego, San Francisco Bay
Area, Seattle and metropolitan Washington, D.C. For additional information on
CarrAmerica, including space availability, visit our web site at
http://www.carramerica.com.
Estimates of Diluted FFO and earnings per share and certain other
statements in this release, including management's expectations about, among
other things, operating performance and financial conditions, may constitute
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Reform Act"). Such forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause the actual results, performance, dividends, achievements or
transactions of the company and its affiliates or industry results to be
materially different from any future results, performance, achievements or
transactions expressed or implied by such forward-looking statements. Such
factors include, among others, the following: national and local economic,
business and real estate conditions that will, among other things, affect
demand for office space, the extent, strength and duration of any economic
recovery, including the effect on demand for office space and the creation of
new office development, availability and creditworthiness of tenants, the
level of lease rents, and the availability of financing for both tenants and
us; adverse changes in real estate markets, including, among other things, the
extent of tenant bankruptcies, financial difficulties and defaults, the extent
of future demand for office space in our core markets and barriers to entry
into markets which we may seek to enter in the future, the extent of the
decreases in rental rates, our ability to identify and consummate attractive
acquisitions on favorable terms, our ability to consummate any planned
dispositions in a timely manner on acceptable terms, and changes in operating
costs, including real estate taxes, utilities, insurance and security costs;
actions, strategies and performance of affiliates that we may not control or
companies in which we have made investments; ability to obtain insurance at a
reasonable cost; ability to maintain our status as a REIT for federal and
state income tax purposes; ability to raise capital; effect of any terrorist
activity or other heightened geopolitical crisis; governmental actions and
initiatives; and environmental/safety requirements. For a further discussion
of these and other factors that could impact the company's future results,
performance, achievements or transactions, see the documents filed by the
company from time to time with the Securities and Exchange Commission, and in
particular the section titled, "The Company - Risk Factors" in the company's
Annual Report or Form 10-K.
SOURCE CarrAmerica Realty Corporation
 back to top
Related links:
http://www.carramerica.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19990820/CRELOGO
AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Media Contact: Maureen Wheeler,
+1-202-729-1756, maureen.wheeler@carramerica.com, or Analyst
Contact: Stephen Walsh, +1-202-729-1764,
stephen.walsh@carramerica.com, both of CarrAmerica Realty
Corporation
|
