H&R REIT completes the acquisition of Two Gotham Center
October 27 2011 - 7:51AM
PR Newswire (Canada)
TORONTO, Oct. 27, 2011 /CNW/ - H&R REIT is pleased to announce
that it has completed the previously announced acquisition of Two
Gotham Center. The State-of-the-Art office tower in Long
Island City, New York was purchased for $415.5 million. The
recently completed 22 storey Class A office tower comprises 661,000
rentable square feet of office space, 100% leased to the City of
New York for an initial term of 20 years with contracted rental
escalations of approximately 10% every 5 years, providing a
bondable income stream secured by the superior AA credit of the
City of New York, as well as an additional 9,000 square feet of
prime ground floor retail space. The property represents the first
building of Gotham Center - a 2-block development that is
transforming the landscape of Long Island City. Once
completed, it will contain approximately 3.5 million square feet of
new office, retail, parking and residential development.
Designed by architects Moed de Armas & Shannon, Two Gotham
Center was developed and owned by the internationally recognized
developer Tishman Speyer, in a partnership with Square Mile Capital
LLC and the Modell family. Two Gotham Center presents a beautifully
curving, 325-foot façade of gleaming glass, with efficient and
generous floor plates of 34,500 square feet. The property's cutting
edge green technology will significantly reduce operating costs and
is anticipated to earn a prestigious LEED Silver certification. One
of the defining features of this property is its awe inspiring
views of the East River and the Midtown Manhattan Skyline. In
addition, the property's Queens Plaza location places it on the
doorstep of Long Island City's most important transportation
hub. Six separate subway lines are accessible within a two
minute walk of the Property, providing rapid transit to Midtown
Manhattan's Grand Central Station in approximately 8 minutes.
Outstanding bus service, easy access to the Queensboro Bridge, the
Long Island Expressway, and the Long Island Railroad Station
nearby, all add to the unmatched connectivity of the area.
Due to its superior transportation infrastructure and relative
affordability, Long Island City is ideally positioned to serve as
an extension of midtown Manhattan, where virtually no development
sites remain. About H&R REIT H&R REIT is an open-ended real
estate investment trust, which owns a North American portfolio of
38 office, 117 industrial and 133 retail properties comprising over
42 million square feet, with a net book value of approximately $5.4
billion. The foundation of H&R REIT's success since inception
in 1996 has been a disciplined strategy that leads to consistent
and profitable growth. H&R REIT leases its properties long term
to creditworthy tenants and strives to match those leases with
primarily long-term, fixed-rate financing. Forward-looking
Statements Certain information in this news release contains
forward-looking information within the meaning of applicable
securities laws (also known as forward-looking statements)
including, among others, statements relating to the objectives of
H&R REIT, strategies to achieve those objectives, H&R's
beliefs, plans, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts
including, in particular, H&R REIT's expectation regarding
future developments in connection with The Bow, and the amount of
actual distributions to unitholders notwithstanding the trustees
adoption of a distribution policy. Forward-looking statements
generally can be identified by words such as "outlook",
"objective", "may", "will", "expect", "intend", "estimate",
"anticipate", "believe", "should", "plans", "project", "budget" or
"continue" or similar expressions suggesting future outcomes or
events. Such forward-looking statements reflect H&R's current
beliefs and are based on information currently available to
management. These statements are not guarantees of future
performance and are based on H&R's estimates and assumptions
that are subject to risk and uncertainties, including those
discussed in H&R's materials filed with the Canadian securities
regulatory authorities from time to time, which could cause the
actual results and performance of H&R to differ materially from
the forward-looking statements contained in this news release.
Those risks and uncertainties include, among other things, risks
related to: prices and market value of securities of H&R;
availability of cash for distributions; development and financing
relating to The Bow development; restrictions pursuant to the terms
of indebtedness; liquidity; credit risk and tenant concentration;
interest rate and other debt related risk; tax risk; ability to
access capital markets; dilution; lease rollover risk; construction
risks; currency risk; unitholder liability; co-ownership interest
in properties; competition for real property investments;
environmental matters; reliance on one corporation for management
of substantially all H&R REIT's properties; and changes in
legislation and indebtedness of H&R. Material factors or
assumptions that were applied in drawing a conclusion or making an
estimate set out in the forward-looking statements include that the
general economy is stable; local real estate conditions are stable;
interest rates are relatively stable; and equity and debt markets
continue to provide access to capital. H&R cautions that this
list of factors is not exhaustive. Although the forward-looking
statements contained in this news release are based upon what
H&R believes are reasonable assumptions, there can be no
assurance that actual results will be consistent with these
forward-looking statements. All forward-looking statements in this
news release are qualified by these cautionary statements. These
forward-looking statements are made as of today, and H&R,
except as required by applicable law, assumes no obligation to
update or revise them to reflect new information or the occurrence
of future events or circumstances. SOURCE H&R Real Estate
Investment Trust Image with caption: "H&R REIT completes the
acquisition of Two Gotham Center (CNW Group/H&R Real Estate
Investment Trust)". Image available at:
http://photos.newswire.ca/images/download/20111027_C8303_PHOTO_EN_5665.jpg
H&R Real Estate Investment Trust CONTACT: Additional
information regarding H&R REIT is availableat www.hr-reit.com
and on www.sedar.com. For more information, pleasecontact Larry
Froom, Chief Financial Officer, H&R REIT, 416-635-7520,or
e-mail info@hr-reit.com.
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