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SANTA CLARA, CA-PMC-Sierra Inc. has completed the purchase and resale of the Mission Towers Two building in Santa Clara, relieving the publicly traded company of a $215-million lease obligation. The maker of semiconductor chips for broadband communications says it lost $102 million in the transaction.

The 12-story, 282,000-sf office building is located at 3985 Freedom Circle. PMC-Sierra acquired the building from WHTS Freedom Circle Partners LLC, a joint venture of Tishman Speyer, Travelers Real Estate Venture and Whitehall Street Real Estate Limited Partnership IX. The entity that acquired the building from PMC-Sierra was not released by PMC and was not otherwise immediately available. The transactions were brokered by Colliers International SVP CarlaLindorff.

PMC-Sierra signed a 10-year, $256-million lease in 2000 for 17 of 24 floors in the two Mission Towers buildings and moved its headquarters from Burnaby, B.C. Under the lease obligation related to the Mission Towers Two building, the company says it would have been required to pay $5.5 million per quarter through December 2011.

Since it signed the lease, the company has had to let go hundreds employees, its share price has fallen from a high of $245 (in mid 2000) to $13 as of Monday, and rental rates have plummeted. On Tuesday, the day the news of the Mission Towers Two sale was announced, the company’s share price rose $0.71 or 5.4% to $13.86, a new 52-week high.

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