Brookfield Office Properties Sells Two Assets for Net Proceeds of $182 Million

Tue Nov 20, 2012 5:27pm EST

* Reuters is not responsible for the content in this press release.

  NEW YORK, NY, Nov 20 (Marketwire) -- 
Brookfield Office Properties Inc. (NYSE: BPO) (TSX: BPO) announced today
the sale of two assets: the 33 South 6th Street / City Center property in
Minneapolis and the KBR Tower office building in Houston, in which
Brookfield sold its 50% interest along with joint venture partner KBR. 

    "These dispositions continue our active capital recycling program over
the past two years in which we have sold seven mature or non-strategic
assets and reinvested proceeds into higher-yielding strategic
opportunities," said Dennis Friedrich, chief executive officer of
Brookfield Office Properties. 

    33 South 6th Street / Minneapolis City Center

    Brookfield sold the 33 South 6th Street / Minneapolis City Center
property in Minneapolis to Shorenstein Properties LLC on behalf of its
tenth investment fund, Shorenstein Realty Investors Ten, L.P. for $205.5
million gross. Net proceeds to Brookfield were approximately $106 million.

    The 50-story property contains 1.1 million square feet of office space,
370,000 square feet of retail space and 687 parking stalls. Target Corp.
is the anchor tenant, renting 72% of office space under a lease that
expires in December 2023. Overall, the property is 95% leased. 

    Eastdil Secured advised Brookfield in the sale of 33 South 6th Street /
Minneapolis City Center.

    KBR Tower, Houston

    Brookfield, along with joint venture partner KBR Inc., sold the KBR Tower
office building and adjacent garage in Houston to Corporate Property
Associates 17-Global, a public non-traded REIT affiliate of W. P. Carey
Inc. (NYSE: WPC) for $174.6 million gross. Brookfield's U.S. Office Fund
(in which Brookfield owns an 84% interest) had owned a 50% interest in
the building through a joint venture with KBR. Net proceeds to Brookfield
were approximately $76 million.

    KBR Tower, located at 601 Jefferson St. in downtown Houston, contains
1.05 million square feet of headquarter office and retail space, with an
adjacent 1,500-space garage. Brookfield acquired its stake in the
40-story tower as part of the Trizec portfolio in 2006. 

    KBR occupies 87% of its namesake tower, which is 99.8% leased. In
February 2010, KBR signed an industry-leading 20-year net lease renewal
and expansion with Brookfield for 1.2 million square feet at KBR Tower
and the adjacent 500 Jefferson St. 

    Allied Advisors LLC advised the joint venture in the sale of KBR Tower
and arranged acquisition debt on behalf of the purchaser.

    Brookfield retains a sizeable market share of class A office product in
downtown Houston, with eight properties totaling 8.4 million square feet. 

    About Brookfield Office Properties
 Brookfield Office Properties owns,
develops and manages premier office properties in the United States,
Canada, Australia and the United Kingdom. Its portfolio is comprised of
interests in 112 properties totaling 78 million square feet in the
downtown cores of New York, Washington, D.C., Houston, Los Angeles,
Toronto, Calgary, Ottawa, London, Sydney, Melbourne and Perth, making it
the global leader in the ownership and management of office assets.
Landmark properties include the World Financial Center in Manhattan,
Brookfield Place in Toronto, Bank of America Plaza in Los Angeles,
Bankers Hall in Calgary, Darling Park in Sydney and Brookfield Place in
Perth. The company's common shares trade on the NYSE and TSX under the
symbol BPO. For more information, visit
www.brookfieldofficeproperties.com.

    

Contact: 
Melissa Coley 
Vice President, Investor Relations and Communications
(212) 417-7215
melissa.coley@brookfield.com 

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