Brookfield Office Properties , a real estate investment firm, recently announced the divestiture of two assets comprising the 33 South 6th Street/City Center property in Minneapolis and the KBR Tower office building in Houston. Net proceeds from the asset sale amounted to $182 million.
The 33 South 6th Street/City Center property spanning 1.1 million square feet was sold to Shorenstein Properties LLC for gross proceeds of $205.5 million. Additionally Brookfield sold a 50% stake in the KBR Tower office building and adjacent garage in Houston to a non-traded REIT affiliate of W. P. Carey Inc. (WPC - Free Report) for gross proceeds of $174.6 million.
Spanning 1.05 million square feet of space, KBR Tower was a joint venture with KBR Inc. (KBR - Free Report) . The engineering company KBR had signed a 20-year term lease with Brookfield in 2010 for 1.2 million square feet at KBR Tower (87% occupancy).
Brookfield continues to reposition its portfolio through the disposal of non-strategic assets and acquisition of high-quality properties. The asset recycling program is intended to enhance the overall quality of its portfolio. Over the last two years, the company has divested seven non-core assets.
Based in New York, Brookfield owns, develops and manages premier office properties in the United States, Canada and Australia. It also provides ancillary real estate service businesses, such as tenant service and amenities. The company invests in high growth and high barrier-to-entry markets.
Brookfield 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.