Company expands reach into Pompano Beach, Fort Lauderdale and four other submarkets
Boca Raton, FL – October 9, 2013 – Liberty Property Trust (NYSE: LRY) has announced that its previously announced acquisition of the operating partnership of Cabot Industrial Value Fund III was completed today for a purchase price of $1.475 billion.
Locally, the purchase includes 18 buildings with 72 tenants across the South Florida region. The agreement adds 1.5 million square feet of industrial space to the portfolio and brings the total industrial, office and flex space owned in the market to more than three million square feet.
“This acquisition is tremendously exciting to us because it implements our strategy to increase our industrial footprint across the region, especially in the seaport and airport submarkets,” said Andy Petry, vice president and city manager, Liberty Property Trust. “These new properties diversify our holdings, both of which will help our current tenants who wish to expand and new customers who are seeking space in the market.”
The deal includes seven buildings in Pompano Beach, four in Fort Lauderdale, three in West Palm Beach, two in Weston and one each in Deerfield Beach and Medley.
Acquisition Adds 177 Buildings to Liberty’s National Portfolio
The transaction has increased Liberty’s national industrial platform by approximately 23 million square feet and added 177 properties in 24 new and existing Liberty industrial markets. Approximately 58% of the total portfolio is located in existing Liberty industrial markets, including Chicago, South Florida, Houston, New Jersey, Maryland and Central Pennsylvania.
The remaining approximately 10 million square feet are located in 10 markets in which Liberty does not currently have a presence, including Atlanta, Dallas/Fort Worth and Southern California, which combined comprise 21% of the Cabot square footage.
The acquisition has been funded through a combination of sources including proceeds of $834.1 million from an offering of 24,150,000 common shares, proceeds from the offering of $450 million of 4.40% senior notes due 2024, and the assumption of $230 million in mortgage debt.
For a complete list of properties acquired, visit www.libertyproperty.com.
About Liberty Property Trust
Liberty is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties. Liberty's 106 million square foot portfolio consists of 843 properties providing office, distribution and light manufacturing facilities to 2,100 tenants.
Forward Looking Statement
The statements in this release, as well as information included in oral statements, contain statements that are or will be forward-looking, such as statements relating to, among others, the consummation of the acquisition described herein, the consummation and terms of the financing arrangements relating thereto, future asset dispositions, expectations for our financial condition and credit profile, the impact of the acquisition on our portfolio and business and our growth prospects. These forward-looking statements generally are accompanied by words such as “believes,” “anticipates,” “expects,” “estimates,” “should,” “seeks,” “intends,” “proposed,” “planned,” “outlook” and “goal” or similar expressions. Although the company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, the company can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve important risks, uncertainties and other factors that could cause actual results to differ materially from the expected results and, accordingly, such results may differ from those expressed in any forward-looking statements made by, or on behalf of the company. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events. These risks, uncertainties and other factors include, without limitation, uncertainties affecting real estate business generally (such as entry into new leases, renewals of leases and dependence on tenants’ business operations), risks relating to the integration of the operations of entities that we have acquired or may acquire, risks relating to financing arrangements and sales of securities, possible environmental liabilities, risks relating to leverage and debt service (including availability of financing terms acceptable to the company and sensitivity of the company’s operations and financing arrangements to fluctuations in interest rates), dependence on the primary markets in which the company’s properties are located, the existence of complex regulations relating to status as a REIT and the adverse consequences of the failure to qualify as a REIT, risks relating to litigation, including without limitation litigation involving entities that we have a acquired or may acquire, and the potential adverse impact of market interest rates on the market price for the company’s securities.
General Inquiries: Andy Petry, Liberty Property Trust, 561/981-4849
Media Inquiries: Robbie Tarpley Raffish, a.s.a.p.r., 443/944-9301