Site to be Ernst & Young's National Headquarters
NEW YORK, Aug. 16 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP),
a leading real estate investment trust, and professional services giant
Ernst & Young LLP announced today that Ernst & Young has signed a 20-year
lease for a new 37-floor, 1 million-square foot national headquarters to be
built by Boston Properties at the site of 5 Times Square, on the west side of
Seventh Avenue between 41st and 42nd Streets in New York City. Boston
Properties recently completed the acquisition of this site's leasehold
interest and ground rent credits from The Prudential Insurance Company of
America for a purchase price of $152.5 million in cash. The site is part of
the 42nd Street Development Project, a redevelopment project initiated by the
State and City of New York. Boston Properties is also in the process of
acquiring and pre-leasing Site 1 of the redevelopment project, directly across
Seventh Avenue from the 5 Times Square site.
The building has been designed by the highly acclaimed architect
Bill Pedersen of the firm Kohn, Pedersen, Fox of New York. The office tower
features a dramatic angular shape, with a sloping fin on the Seventh Avenue
side, with space for commercial signage and retail space at the base.
Mr. Pedersen has designed several other world-renowned buildings, such as
33 Wacker Drive in Chicago, the IBM Headquarters in Montreal and Armonk,
New York, and the world's tallest building, currently under construction in
Shanghai, China. Occupancy is projected in the first half of 2002.
"Our new state-of-the-art location in the heart of Manhattan will fit the
needs of our global professional services firm well into the 21st Century and
be a productive place for our clients, existing employees and new employees as
we continue to grow," said Philip A. Laskawy, chairman and CEO of
Ernst & Young.
Ernst & Young's New York headquarters are currently located at 787 Seventh
Avenue, where E&Y has been since 1989. The firm's worldwide organization has
85,000 people and revenues of $10.9 billion. Ernst & Young plans to move most
of its approximately 4,000 New York City employees from seven buildings it
leases in the city into the new location. E&Y's Advanced Development Center,
an environment for accelerated design and delivery for business solutions,
will remain at 55 Broad Street.
Mortimer B. Zuckerman, Chairman of Boston Properties, stated, "This
development affirms Boston Properties' commitment to New York City, and
demonstrates our ability to undertake development of large complicated
projects." Mr. Zuckerman added, "Times Square is perhaps the greatest
example to date of urban renaissance through joint public and private efforts,
making Times Square the most dynamic, convenient, and exciting place to be in
New York City."
Both the State and City of New York commented on the transaction:
Charles Gargano, Chairman of the 42nd Street Development Project and its
parent, Empire State Development Corporation, said, "We are very pleased to
see our redevelopment of the heart of Times Square take another big step
forward with the announcement of this lease with Ernst & Young. Thanks to
Governor Pataki's vision and the private sector's confidence in New York,
completion of the redevelopment of Times Square will soon be reality, years
before anyone ever thought possible."
Mayor Rudolph W. Giuliani said, "The great news for New York City and
Times Square continues. Today's announcement by Boston Properties and
Ernst & Young reinforces their support and commitment to New York City. The
new one million-square foot office tower at 5 Times Square will be a great
addition to the renaissance already taking place in the New Times Square.
What was once considered a symbol of urban blight now serves as a shining
example of the successes that have reestablished Times Square as The
Crossroads of the World."
Ernst & Young LLP ( http://www.ey.com ) provides assurance and advisory business
services, tax services and consulting for domestic and global clients. The
firm has 30,000 people in 87 U.S. cities. Ernst & Young LLP is a member firm
of Ernst & Young International ( http://www.eyi.com ), a global organization with
member firms in 675 cities.
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 office, industrial and hotel
properties. The Company is one of the largest owners and developers of office
properties in the United States, concentrated in the Northeast Corridor from
Virginia to Greater Boston and in downtown 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. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy. Developments that are commenced by Boston Properties may not be
completed for various reasons and, if completed, may not produce a desired
yield on invested capital. 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.
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Elaine Quinlan of Boston Properties,
617-236-3300, Catherine Peters of Ernst & Young, 212-773-3517,
William Haynes of The Weber Group, 617-520-7011, or Claire
Koeneman of The Financial Relations Board, 312-640-6784
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