Simultaneously, also as planned, Parsippany, NJ-based Prudential Real Estate Investors acquired a Prentiss portfolio valued at about $753 million. Brandywine will manage those assets for two years, providing it with a revenue stream as it integrates operations. Including the properties sold to PREI, Brandywine now owns and/or manages 49 million sf of space with a total market capitalization of $6 billion.
Michael V. Prentiss, chairman, and Thomas F. August, president and CEO of the former Dallas REIT, join Brandywine's board. Brandywine is retaining several former Prentiss executives and incorporating that company's regional operations into its operating platform. "The new Brandywine Realty Trust is well positioned to execute our market concentration program within a new multi-market footprint," says Gerard H. Sweeney, president and CEO, in a statement.
On Jan. 5, Prentiss was delisted from the NYSE and shares of BDN closed at $29.83 a share, up a little more than 3% since the announcement of the completion of the merger. The 52-week high of $33.42 a share was reached on July 25, 2005, and the 52-week low of $25.88 a share occurred on Nov. 5, 2005.
Lazard Freres & Co. advised Prentiss in the merger agreement, and JP Morgan Securities served as advisor to both Brandywine and PREI. The Pepper Hamilton law firm advised Brandywine, while Akin Gump law firm advised Prentiss.
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