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MELVILLE, NY-The REIT expects its $202-million public offering in Australia of units in Reckson New York Property Trust, limited property trust, will begin trading on the Australian Stock Exchange on Sept. 26. In the tranche I closing, the LPT purchased a 75% indirect interest in 17 suburban core plus office properties, containing approximately two million sf for $367 million. For additional coverage of Reckson's LPT, click here.

Upon completion of all three tranches, which are expected to close in the first and fourth quarters of 2006, the LPT will own a 75% indirect interest in a total of 25 suburban core plus office properties acquired from Reckson, containing approximately 3.4 million sf. The total purchase price will be approximately $563 million. Reckson will retain a 25% indirect interest in these properties.

The LPT also has a two-year option to purchase an additional 10 suburban core plus office properties from Reckson, comprising approximately 1.2 million sf priced at fair market value. Reckson intends to use the proceeds from the tranche I closing of approximately $128 million--net of debt assumed by the LPT--to fund a portion of recent acquisitions and to pay down debt.

"We believe our markets offer significant opportunities to acquire attractive core plus investments and having global financing options such as the Australian vehicle will better enable us to be more competitive in pursuing these investment opportunities throughout all real estate cycles, " says Scott Rechler, Reckson's president and chief executive officer. Reckson's vice president of investor relations, Susan McGuire previously told GlobeSt.com that Australian investors were attracted for several reasons, in particular the unique supply and demand characteristics of the New York Tri-state area suburban markets and the strength of Reckson's franchise.

Instant Insights /

GlobeSt.com UPDATE: Reckson's Australian Trust Moves Along

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