BOSTON--(BUSINESS WIRE)--Oct. 9, 2013--
Boston Properties, Inc. (NYSE: BXP), a real estate investment
trust, announced that it has completed the previously announced sale of
a 45% ownership interest in Times Square Tower for a gross purchase
price of $684 million in cash. In connection with the sale, Boston
Properties formed a joint venture with an affiliate of Norges Bank. In
addition to retaining a 55% interest in the venture, Boston Properties
will provide customary property management and leasing services for the
venture. The property is unencumbered by debt. Boston Properties
currently expects that it would distribute at least the amount of
proceeds necessary to avoid paying a corporate level tax on the gain
realized from the sale.
Times Square Tower is a 1,246,000 square foot, Class A office tower,
including associated retail space and signage, located in the heart of
Times Square in New York City. It was developed by Boston Properties and
completed in 2004, and it is currently 99% leased. The property is
subject to a ground lease with The City of New York with 76 years
remaining, and it benefits from a Payment In Lieu of Taxes (PILOT)
program through June 2024. The joint venture will hold the contractual
right to purchase the fee interest in the property beginning in July
2024.
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 space, one hotel, three residential properties and four retail
properties. Boston Properties is one of the largest owners and
developers of Class A office properties in the United States,
concentrated in five markets – Boston, New York, Princeton, San
Francisco and Washington, DC.
This press release contains forward-looking statements within the
meaning of the Federal securities laws. You can identify these
statements by our use of the words “assumes,” “believes,” “estimates,”
“expects,” “guidance,” “intends,” “plans,” “projects” and similar
expressions that do not relate to historical matters. 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, acquisition and disposition activity, the ability to
effectively integrate acquisitions, the uncertainties of investing in
new markets, the costs and availability of financing, the effectiveness
of our interest rate hedging contracts, the ability of our joint venture
partners to satisfy their obligations, the effects of local, national
and international economic and market conditions (including the impact
of the European sovereign debt issues), the effects of acquisitions,
dispositions and possible impairment charges on our operating results,
the impact of newly adopted accounting principles on the Boston
Properties’ accounting policies and on period-to-period comparisons of
financial results, regulatory changes and other risks and uncertainties
detailed from time to time in Boston Properties’ filings with the
Securities and Exchange Commission. Boston Properties does not
undertake a duty to update or revise any forward-looking statement,
whether as a result of new information, future events or otherwise.
Source: Boston Properties, Inc.
Boston Properties, Inc.
Michael Walsh, 617-236-3410
Senior
Vice President, Finance
or
Arista Joyner, 617-236-3343
Investor
Relations Manager