Boston Properties Trades Stock for Prudential Center Development Rights

BOSTON-Just over two years after buying the Hub’s Prudential Center, Boston Properties has acquired the remaining 50% interest in future development rights for the landmark mixed-use complex. The rights were obtained from the Prudential Insurance Co. in exchange for 439,059 shares of Boston Properties common stock.

“The acquisition of all remaining development rights at the Prudential Center will allow the company to realize 100% of the future value created from the development at this project,” says Boston Properties Senior Vice President Douglas T. Linde.

The REIT bought the 23-acre complex, which includes 1.7 million sf of existing office space, in 1998 for $546 million, although the firm later spun off three luxury apartment buildings to AvalonBay Communities.

In addition to an 865,000-sf office building now under construction, the Prudential Center can accommodate another 257,000-sf office building, 52,000 sf of retail and two retail/residential buildings totaling another 530,000 sf. The company is already making plans to build the office building on a site fronting Boylston Street.

In a separate action, Boston Properties also declared a dividend this week of 53 cents per share of common stock for the period of July 1st to September 30th, payable on October 27th to shareholders of record as of September 29th. The REIT also declared a dividend of 70 cents per share of Series A Convertible Redeemable Preferred Stock. It will be paid on November 15th to shareholders of record as of September 29th.