UPDATE 1- Boston Properties sees $841.9 mln from stock sale

Mon Jun 8, 2009 2:43pm EDT

Related Topics

* Sale expected to net $841.9 mln for co

* Company to sell 17.25 mln shares

* Stock down 37 cents at $49.95

By Ilaina Jonas

NEW YORK, June 8 (Reuters) - Boston Properties Inc (BXP.N), which owns and develops office properties in key U.S. cities, on Monday said it expects to net $841.9 million from its sale of 17.25 million shares.

The real estate investment trust (REIT), whose chairman is publisher Mortimer Zuckerman, said the sale would consist of 15 million shares at $50.00 per share plus 2.25 million shares to cover an optional overallotment underwriters have chosen to exercise.

Since March, REITs have raised more than $11.5 billion in equity offerings as companies seek to use cash to pare down their debt, strengthen their balance sheets and prepare for future acquisitions.

Morgan Stanley and JPMorgan are serving as joint book-running managers for the Boston Properties sale, which is expected to close on June 10, 2009.

Shares of Boston Property were off 0.74 percent, or 37 cents, at $49.95 in afternoon trade Monday, while the benchmark MSCI U.S. REIT Index .RMZ was down 1.33 percent. (Reporting by Ilaina Jonas, editing by Dave Zimmerman)

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