Brookfield Office Properties Inc.
), a real estate investment trust (REIT), has recently announced
its decision to acquire a portfolio of premier office properties
and a development site in London from Hammerson plc, a leading
property development and investment company in the U.K. The
purchase price of $829 million would be funded through the
assumption of $106 million of debt, additional property-level debt,
and from available cash resources.
The property portfolio set to be acquired by Brookfield
comprises of four operating assets spanning 884,000 square feet at
an initial yield of 6%. These include '125 Old Broad Street' - a
328,000-square-foot class-A 26-story office tower that was
completely redeveloped in 2008. Brookfield will own a 50% stake in
this building, which is presently 98% leased to various tenants.
The company would also buy '99 Bishopsgate' - a 26-story
building totaling 339,000 square feet of office space that was
extensively redeveloped in 1995. The property (62% occupied) is
located in close proximity to the Liverpool Street Station.
In addition, Brookfield would acquire 'Leadenhall Court' - a
109,000-square-foot office building fully leased to a single
tenant; and other smaller assets such as '1 Puddle Dock' and
buildings on Shoreditch High Street.
Besides, the company has agreed to acquire 'Principal Place'
development site, which could accommodate future construction of a
599,000-square-foot office tower, a 51-story 237,000-square-foot
residential tower, and ancillary retail space. The property is
strategically located between Liverpool Street and Shoreditch High
Street rail stations and is likely to attract a strong tenant
Based in New York, Brookfield owns, develops and manages premier
office properties in the U.S., Canada, and Australia. It also
provides ancillary real estate service businesses, such as tenant
service and amenities.
The company invests in high-growth and high barrier-to-entry
markets that include New York, Washington D.C., Houston, Los
Angeles, Denver, Seattle, Toronto, Calgary, Ottawa, Sydney,
Melbourne, and Perth. Brookfield presently has ownership interests
in 110 properties totaling 78 million square feet.
We presently have a Neutral recommendation for Brookfield, which
currently has a Zacks #3 Rank, translating into a short-term Hold
rating. We also have a Neutral recommendation and a Zacks #2 Rank
(short-term Buy rating) for
CoreSite Realty Corporation
), one of the competitors of Brookfield.
BROOKFLD OFFICE (BPO): Free Stock Analysis
CORESITE REALTY (COR): Free Stock Analysis
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