NEW YORK, Aug. 29 /PRNewswire-FirstCall/ -- Boston Properties, Inc.
(NYSE: BXP), a real estate investment trust, and Citibank, N.A. announced
today that they have signed a contract for Boston Properties to acquire 399
Park Avenue from Citibank. The acquisition is expected to close before the
end of September, 2002.
399 Park Avenue is a 1.68 million square foot building that occupies the
entire block from Park Avenue to Lexington Avenue between 53rd and 54th
Streets in Midtown Manhattan. The building serves as the corporate
headquarters of Citigroup (NYSE: C), which occupies approximately 40% of the
building. The building also includes Lehman Brothers, Bingham McCutchen,
Arnold & Porter, Wilmer Cutler & Pickering, and JP Morgan Chase among its
roster of blue chip tenants. The building is fully leased, and more than 75%
percent of the space in the building is leased for terms in excess of ten
years. The purchase price is $1.06 billion.
We believe this transaction represents a terrific opportunity and value
for our company," said Sanford I. Weill, Chairman and Chief Executive Officer
of Citigroup. "While we continue to be a significant owner of real estate in
New York, we are delighted to be deepening our relationship with Boston
Properties, an excellent company and property manager."
Mr. Weill noted that Citigroup will recognize a total pre-tax gain of
approximately $830 million from the sale, with approximately $530 million
pre-tax recognized immediately upon sale and the remainder recognized over the
term of Citigroup's lease agreements.
Boston Properties currently owns five major office properties in Midtown
Manhattan: Citigroup Center, 599 Lexington Avenue, 280 Park Avenue, 875 Third
Avenue and Five Times Square. In addition, Boston Properties has Times Square
Tower currently under construction in Times Square.
Mort Zuckerman, Chairman of Boston Properties, said, "The acquisition of
399 Park Avenue complements our core strategy of acquiring and building the
finest properties in the markets in which we operate. It provides an
extraordinary combination of return in relation to risk and an outstanding
long-term real estate value. This building represents everything we seek in
an acquisition. It should enhance our short term and long term
profitability. We are also delighted to have Citigroup's world headquarters as
part of our portfolio and look forward to continuing our strong relationship
with Citigroup as one of our premier tenants."
Boston Properties will host a conference call and audio web cast, both
open to the general public on Tuesday, September 3, 2002 at 10:00AM (Eastern
Time) to discuss the transaction.
The conference call can be accessed by dialing 800-452-1315 (Domestic) and
706-634-7372 (International), no passcode is required. The replay will be
available through September 10, 2002 by dialing 800-642-1687 (Domestic) and
706-645-9291 (International) / passcode 5496448. The Company will web cast the
call at http://www.streetevents.com, and a link to the web cast will be available on
the Company's own site at http://www.bostonproperties.com in the investor section. A
replay of the web cast will be available for 10 days on both web sites.
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, Washington DC, Midtown Manhattan and San Francisco. Visit the
Company's web site at http://www.bostonproperties.com .
Citigroup, the preeminent global financial services company with some 200
million customer accounts in more than 100 countries, provides consumers,
corporations, governments and institutions with a broad range of financial
products and services, including consumer banking and credit, corporate and
investment banking, insurance, securities brokerage, and asset management.
Major brand names under Citigroup's trademark red umbrella include Citibank,
CitiFinancial, Primerica, Salomon Smith Barney, Banamex, and Travelers Life
and Annuity. Additional information may be found at http://www.citigroup.com .
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 to reach agreement
with the selling party regarding the acquisition price or other terms of a
contribution or acquisition agreement. Agreements that the Company enters into
may be terminated for a variety of reasons, including a failure by the Company
or the other party to fulfill all conditions required for consummation of the
agreements. Accordingly, Boston Properties can give no assurances that the
transaction contemplated by this release will be consummated on the terms
described or at all.
SOURCE Boston Properties, Inc.
 back to top
Related links:
http://www.citigroup.com
http://www.bostonproperties.com
CONTACT:
Douglas T. Linde, Chief Financial Officer of
Boston Properties, Inc., +1-617-236-3300, or Christina Pretto of
Citibank, N.A., +1-212-793-8217, or General info, Marilynn Meek,
+1-212-445-8451, or Media, Judith Sylk-Siegel, +1-212-445-8431,
both of FRB Weber Shandwick
|
