Brandywine Realty Trust (BDN - Snapshot Report) recently completed the sale of a two-building office property -- Pacific Ridge Corporate Center, located in Carlsbad, California -- for $29 million. The net proceeds from the transaction will be used by Brandywine for general corporate purposes. At the time of closing of the transaction, the 121,381 square foot property was 84% leased.
Through this strategic initiative, Brandywine expects to enhance the quality of its portfolio and use the additional capital, which it generates for other investment activities. The asset divestiture strengthens the company’s financial flexibility by providing it with additional liquidity. The portfolio repositioning strategy on the company’s part is to sell the non-core properties and recycle capital into lucrative markets.
With this deal, Brandywine completed its $123 million worth property sales in 2012, and remains well placed to achieve its target of asset sale worth $175 million in 2012 as per its business strategy.
During the first quarter of 2012, the company completed the disposition of a fully leased; 268,240 square foot office building located in Herndon, Virginia for $91.1 million and also completed the disposition of a 32,978 square foot office building in Moorestown, New Jersey for $3.0 million.
Brandywine Realty is one of the largest publicly traded integrated real estate companies in the United States. The company owns, develops, manages and has ownership interests in a primarily Class A, suburban and urban office portfolio comprising 306 properties totalling 34.6 million square feet.
Brandywine Realty currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Mack-Cali Realty Corp. (CLI - Analyst Report) holds a Zacks #4 Rank, which translates into a short-term Sell rating