"Virtually all of the selling is done," says president and chief financial officer Paul Fisher. That allows the REIT to focus on its development projects and leasing properties in the rest of its 38-million-sf portfolio, adds chief executive officer Michael M. Mullen.
Fisher adds the deal goes beyond establishing a trading partner for the next three years and knowing how much capital it has to put to higher-yielding uses in the next year. "It represents a substantial amount of very cheap capital for us," Fisher says. "We can invest more with greater certainty."
While the focus shifts in leasing and investment, the deal helps the former activity as it includes 609,083 sf of vacant space as well as another 1.1 million sf of leases expected to roll over this year. The company reports it has taken care of--by sales, lease renewals or new deals--46% of its 2005 expirations.
Leasing activity is being led by senior vice president of development Sean P. Maher, who picks up the slack for chief operating officer Paul T. Ahern, who went on paid administrative leave for undisclosed reasons last week. "The basis for the leave relates solely to Paul and has nothing to do with the operation of our business or reporting," Mullen says. "When there's more to say about Paul's status, we'll be sure to let you know."
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