Liberty Property Trust (
- a hybrid real estate investment trust (REIT) - unveiled its
plan to construct an office building for The Vanguard Group in
Malvern, Pa. The total value of the project is estimated to be
$55 million. The development project is aligned to meet the
previously announced outlook for full year 2013.
In early Dec 2012, Liberty Property provided guidance for 2013
FFO per share in the range of $2.60-$2.70. The guidance reflected
an expected increase in overall occupancy along with organic
growth through increased development opportunities.
For the construction, Vanguard inked a long-term lease deal with
Liberty Property, which was represented by
Jones Lang LaSalle Incorporated (
. Liberty Property will develop the office building at Great
Valley Corporate Center - a 41 years old business park community.
The construction of the 200,000 square foot, six-story office
building will begin in Mar 2013 and is expected to complete by
Great Valley Corporate Center comprises offices and Research and
Development space spanning 5 million square feet. Strategically
positioned in historic Chester County, the corporate center is
well connected to major highways such as Route 202 High-Tech
Corridor and Pennsylvania Turnpike. The center boasts a class of
leading tenants like
Microsoft Corporation (
and Centocor - an operating arm of
Johnson & Johnson (
Liberty Property boasts a strong portfolio of multi-tenant
industrial and office properties in prime business locations in
the U.S., and operates across multiple markets that enable
mitigation of geographical risk. We expect the abovementioned
transaction to further strengthen Liberty Property's tenant base
and boost its top-line growth going forward.
Liberty Property currently holds a Zacks Rank #4 (Sell).
Note: FFO, a widely used metric to gauge the performance of
REITs, are obtained after adding depreciation and amortization
and other non-cash expenses to net income.
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