$146 Million Closed in April; $163 Million in Escrow
LOS ANGELES--(BUSINESS WIRE)--
Kilroy Realty Corporation(NYSE: KRC) announced today that
it has sold or is in escrow to sell ten West Coast office buildings for
gross proceeds of approximately $309.2 million. In aggregate, the
properties total 1.0 million square feet and were approximately 84%
occupied at March 31, 2015. As part of the company’s capital recycling
strategy, the company will use the proceeds to fund its expanding West
Coast office development program and potential acquisition
opportunities, pay down its line of credit and for other general
corporate purposes.
Details of the transactions are as follows:
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In the first quarter, the company entered into contract to sell nine
office buildings in San Diego, California in two tranches:
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The company completed the sale of three office buildings in
mid-April, 10770 Wateridge Circle and 6200 and 6220 Greenwich
Drive, for $95.0 million in gross proceeds.
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The company expects to complete the sale of the second tranche for
$163.0 million later in the second quarter. The six office
buildings in this tranche include 6260, 6290, 6310, 6340, and 6350
Sequence Drive and 4921 Directors Place.
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Separately, in late-April, the company completed the sale of 15050 NE
36th Street in Redmond, Washington for gross proceeds of $51.2 million.
“We continue to be pleased with our ability to successfully execute our
strategic plan of recycling capital into our state-of-the-art,
value-creating development program,” said John Kilroy, chairman,
president and CEO of Kilroy Realty. "The sales prices in these
transactions reflect strong investor demand for well-located, high
quality properties.”
About Kilroy Realty Corporation. With more than 65 years’
experience owning, developing, acquiring and managing real estate assets
in West Coast real estate markets, Kilroy Realty Corporation (KRC), is
one of the region’s premier landlords. A publicly traded real estate
investment trust and member of the S&P MidCap 400 Index, the company
provides physical work environments that foster creativity and
productivity and serves a broad roster of dynamic, innovation-driven
tenants, including technology, entertainment, digital media and health
care companies.
At December 31, 2014, the company’s stabilized portfolio totaled 14.1
million square feet of office properties, all located in the coastal
regions of greater Seattle, the San Francisco Bay Area, Los Angeles,
Orange County and San Diego. The company is recognized by the Global
Real Estate Sustainability Benchmark (GRESB) as the North American
leader in sustainability and was ranked first among 151 North American
participants across all asset types. At the end of the fourth quarter,
the company’s properties were 39% LEED certified and 56% of eligible
properties were ENERGY STAR certified. In addition, KRC had
approximately 1.7 million square feet of new office and mixed-use
development under construction representing a total estimated investment
of approximately $1.0 billion. More information is available at http://www.kilroyrealty.com.
Forward-Looking Statements. This press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities
Exchange Act of 1934, as amended. Forward-looking statements are based
on our current expectations, beliefs and assumptions, and are not
guarantees of future performance. Forward-looking statements are
inherently subject to uncertainties, risks, changes in circumstances,
trends and factors that are difficult to predict, many of which are
outside of our control. Accordingly, actual performance, results and
events may vary materially from those indicated in forward-looking
statements, and you should not rely on forward-looking statements as
predictions of future performance, results or events. Numerous factors
could cause actual future performance, results and events to differ
materially from those indicated in forward-looking statements,
including, among others, risks associated with: investment in real
estate assets, which are illiquid; trends in the real estate industry;
significant competition, which may decrease the occupancy and rental
rates of properties; the ability to successfully complete acquisitions
and dispositions on announced terms; the ability to successfully operate
acquired properties; the availability of cash for distribution and debt
service and exposure of risk of default under debt obligations; adverse
changes to, or implementations of, applicable laws, regulations or
legislation; and the ability to successfully complete development and
redevelopment projects on schedule and within budgeted amounts. These
factors are not exhaustive. For a discussion of additional factors that
could materially adversely affect our business and financial
performance, see the factors included under the caption “Risk Factors”
in our annual report on Form 10-K for the year ended December 31, 2014
and our other filings with the Securities and Exchange Commission. All
forward-looking statements are based on information that was available,
and speak only, as of the date on which they are made. We assume no
obligation to update any forward-looking statement made in this press
release that becomes untrue because of subsequent events, new
information or otherwise, except to the extent required in connection
with ongoing requirements under U.S. securities laws.
Kilroy Realty Corporation
Tyler H. Rose
Executive Vice
President
and Chief Financial Officer
310-481-8484
or
Michelle
Ngo
Senior Vice President and Treasurer
310-481-8581
Source: Kilroy Realty Corporation