NEW YORK, April 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) a
real estate investment trust, announced today that it has completed its
acquisition of the 59-story 1.6 million square foot Citigroup Center in New
York City at a purchase price of approximately $725 million. The seller was
Dai-Ichi Life Investment Properties, Inc. Total investment including closing
costs and mortgage-recording taxes totaled approximately $755 million. An
affiliate of Deutsche Bank provided a $525 million first mortgage.
    Boston Properties completed the acquisition through a joint venture with
affiliates of Allied Partners. Allied's affiliates have invested $35 million
in common equity in the venture. Boston Properties has invested the balance of
approximately  $195 million of equity required to complete the transaction,
with approximately $66.5 million in common equity and the balance in preferred
equity. All of the Boston Properties equity will earn a 10% priority return
for ten years. The preferred equity and any accumulated unpaid portion of the
priority return on Boston Properties' equity investment will be payable from
cash flow and proceeds of any refinancing of the property before Allied's
affiliates receive a return on their common interest.
    Boston Properties will manage and lease the property, bringing to
4.5 million square feet of Class A office space that the Company owns and
manages in Midtown Manhattan.  The Company's four in-service properties,
599 Lexington Avenue, 875 Third Avenue, 280 Park Avenue and Citigroup Center,
are all located within a five-block area bordered by 48th Street and 53rd
Street, the heart of Midtown.   Boston Properties is also constructing two
towers in Times Square that will total 2.3 million square feet and that
together are 75% pre-leased to two of the "Big Five" accounting firms.
    Mortimer B. Zuckerman, Chairman of Boston Properties, said, "We are
delighted to complete the acquisition of Citigroup Center, an irreplaceable
landmark asset in Midtown Manhattan, one of the most supply-constrained office
markets in the country.  With its high visibility on the New York City skyline
and its high quality tenant roster, Citigroup Center will be a flagship
property in the Company's portfolio."
    Citigroup Center's world-recognized silhouette was built in 1977 and was
designed by Hugh Stubbins & Associates and Emery Roth & Sons.  The atrium,
open-air concourse and office tower lobby were renovated in 1997.  The
property is 100% leased and the tenants include Citigroup, O'Melveny & Myers,
Kirkland & Ellis and AT Kearney, among other well-known tenants.  The building
provides direct access to New York City's Five Boroughs through its prime
location atop a major subway station.
    Boston Properties 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 Class-A office, industrial
and hotel properties.  The Company is one of the largest owners and developers
of Class-A office properties in the United States, concentrated in four core
markets - Boston, Midtown Manhattan, Washington, DC and San Francisco.
    This press release contains forward-looking statements within the meaning
of the Federal securities laws. You should exercise caution in interpreting
and relying on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors which are, in some cases,
beyond Boston Properties control and could materially affect actual results,
performance or achievements. These factors include, without limitation, the
ability to enter into new leases or renew leases on favorable terms,
dependence on tenants' financial condition, the uncertainties of real estate
development and acquisition activity, the ability to effectively integrate
acquisitions, the costs and availability of financing, the effects of local
economic and market conditions, regulatory changes and other risks and
uncertainties detailed from time to time in the Company's filings with the
Securities and Exchange Commission.

Link to this page: