Two Initial Transactions Announced
BOSTON, May 17 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP), a real
estate investment trust, and H. Carl McCall, sole trustee of the New York
State Common Retirement Fund (NYSCRF) today announced that they have entered
into a joint venture agreement. The initial term of the joint venture
agreement is the earlier of three years or until NYSCRF's equity commitment of
$270 million is met. NYSCRF may increase its financial commitment prior to
the end of the third year. During the term of the agreement, NYSCRF has the
right to participate in Boston Properties' future acquisition opportunities
and those development projects that Boston Properties pursues with an
institutional partner.
NYSCRF has acquired interests in two Boston Properties assets through the
joint venture: a 49% interest in Metropolitan Square, a 582,194 square foot
multi-tenant Class A office building in Washington, DC, and a 75% interest in
140 Kendrick Street, Needham, Massachusetts, a 381,000 square foot
build-to-suit development for Parametric Technology that is expected to be
delivered in the first quarter of 2001. Boston Properties received cash
proceeds of approximately $47 million and NYSCRF assumed approximately
$126 million of debt.
H. Carl McCall, sole trustee of the New York State Common Retirement Fund,
manages the pension funds of 880,000 New York State and local public
employees. The fund is valued at approximately $127 billion in assets. This
agreement represents the first joint venture between the two firms. J.P.
Morgan Investment Management acted as sole advisor to NYSCRF in connection
with the joint venture investment program.
Mortimer B. Zuckerman, Boston Properties' Chairman of the Board, said,
"Through this joint venture agreement, we are able to tap an additional source
of equity capital that we can invest in new acquisition and development
opportunities, providing enhanced returns to our shareholders. The venture
also allows us to leverage our development expertise along with our leasing
and management capabilities, while reducing our capital requirements."
H. Carl McCall, sole trustee of the Common Retirement Fund, said, "This
partnership represents a tremendous opportunity for our investment portfolio.
We look forward to our ongoing relationship with Boston Properties."
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 the
Northeast Corridor from Virginia to Greater Boston and in Greater San
Francisco.
To receive Boston Properties' latest news and corporate developments via
fax at no cost, please call 1-800-PRO-INFO; use company code BXP. Visit the
Company's web site at http://www.bostonproperties.com . Also see
http://www.frbinc.com .
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.
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Elaine Quinlan, Investor Relations of Boston
Properties, Inc., 617-236-3300, or General, Marilynn Meek,
212-661-8030, Analysts, Claire Koeneman, 312-266-7800, or Media,
Judith Sylk-Siegel, 212-661-8030, all of The Financial Relations
Board, or Media, Jeffrey Gordon, 518-474-4015, for New York State
Common Retirement Fund
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