Trizec Announces Property Dispositions; Year-to-Date Dispositions Total $445 million
October 19 2005 - 9:00AM
Business Wire
Trizec Properties, Inc. (NYSE:TRZ) today announced it has completed
the disposition of two properties for a total of $105 million. The
properties are Beaumeade Corporate Park in Ashburn, Virginia and
Twinbrook Metro Park in Rockville, Maryland. Including the sale of
these two properties, Trizec's year-to-date disposition volume
totals five properties for aggregate proceeds of $445 million. On
October 18, Trizec sold Beaumeade Corporate Park for $53 million to
Equinix Inc., a leading data center provider occupying three of the
six buildings at the property. Trizec acquired Beaumeade in 1998
and developed the second phase of the property, consisting of two
buildings totaling 226,000 square feet, in 2000. Including the
original four buildings, completed in 1990, the property now totals
460,000 square feet. Also on October 18, Trizec sold Twinbrook
Metro Park for $52 million to a private investment advisory firm.
The 165,000-square-foot office property was constructed in 1983 and
acquired by Trizec in 1998. Brian Lipson, Trizec's Executive Vice
President and Chief Investment Officer commented, "The strength of
the current investment market continues to benefit our capital
recycling efforts. With these dispositions, we have captured the
value created through proactive asset management and strategic
development. Furthermore, we executed these transactions on a
tax-efficient basis with the acquisition of a high-quality asset in
a core market during the second quarter." The Company expects to
recognize a gain on disposition of approximately $55 million during
the fourth quarter of 2005 related to these two sales; however, the
transactions were structured as 1031 like-kind exchanges, resulting
in a deferral of the Company's taxable gains on the sale of these
assets. Trizec Properties, Inc., a real estate investment trust
(REIT) headquartered in Chicago, is one of the largest owners and
operators of commercial office properties in the United States. The
Company has ownership interests in and manages a high-quality
portfolio of 49 office properties totaling approximately 36 million
square feet concentrated in the metropolitan areas of seven major
U.S. cities. The Company trades on the New York Stock Exchange
under the symbol TRZ. For more information, visit Trizec's web site
at www.trz.com or call toll free at 1 (800) 891-7017. This release
contains forward-looking statements, within the meaning of the
federal securities laws, relating to our business and financial
outlook which are based on our current expectations, beliefs,
projections, forecasts, future plans and strategies, and
anticipated events or trends. In some cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "believes,"
"estimates," "predicts," "potential" or the negative of these terms
or other comparable terminology. We intend these forward-looking
statements, which are not guarantees of future performance and
financial condition, to be covered by the safe harbor provisions
for forward-looking statements contained in the federal securities
laws. Forward-looking statements are not historical facts. Instead,
such statements reflect estimates and assumptions and are subject
to certain risks and uncertainties that are difficult to predict or
anticipate. Therefore, actual outcomes and results may differ
materially from those projected or anticipated in these
forward-looking statements. You should not place undue reliance on
these forward-looking statements. A number of important factors
could cause actual results to differ materially from those
indicated by the forward-looking statements, including, without
limitation, the risks described under "Item 1. Business - Risk
Factors" in our 2004 Form 10-K, filed with the Securities and
Exchange Commission on March 11, 2005. These factors include,
without limitation, the following: changes in national and local
economic conditions, including those economic conditions in our
seven core markets; the extent, duration and strength of any
economic recovery; our ability to maintain occupancy and to timely
lease or re-lease office space; the extent of any tenant
bankruptcies and insolvencies; our ability to sell our non-core
office properties in a timely manner; our ability to acquire office
properties selectively in our core markets; our ability to maintain
REIT qualification and changes to U.S. tax laws that affect REITs;
Canadian tax laws that affect treatment of investment in U.S. real
estate companies; the competitive environment in which we operate;
the cost and availability of debt and equity financing; the effect
of any impairment charges associated with changes in market
conditions; the sale or other disposition of shares of our common
stock owned by Trizec Canada Inc.; our ability to obtain, at a
reasonable cost, adequate insurance coverage for catastrophic
events, such as earthquakes and terrorist acts; and other risks and
uncertainties detailed from time to time in our filings with the
Securities and Exchange Commission.
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