In a statement, the REIT estimates gains of approximately $60 million. Shares, which trade under BDN on the NYSE, were selling at midday Jan. 12 at $26.78 a share. At that price, the gains, including over-allotment shares, would be closer to $70 million before costs of the transaction.
Proceeds will be used to reduce recent borrowings from the company's revolving credit facility. In the final days of December, it used approximately $20 million of that credit to acquire a 112,000-sf office property in the Princeton Pike Corporate Center in Lawrenceville, NJ. The 97%-occupied asset adds to the approximately 500,000 sf of office space Brandywine owns in the park along with land to accommodate another 400,000 sf of office construction.
On Dec. 30, the REIT also used approximately $40 million of its revolving credit to partially fund redemption of its 8.75% Series B senior cumulative convertible preferred shares of stock.
The 52-week high for BDN common stock is $27.74 a share, realized on Dec. 26, 2003. The 52-week low, $19.13 per share, occurred in mid-February last year.
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