SOURCE: Brandywine Realty Trust

April 13, 2007 12:46 ET

Brandywine Realty Trust Acquires the Remaining 49 Percent Minority Interest in Its 1.1 Million Square Foot California/Virginia Joint Venture

RADNOR, PA -- (MARKET WIRE) -- April 13, 2007 -- Brandywine Realty Trust (NYSE: BDN) announced today that it has acquired the remaining 49 percent interest previously held by Stichting Pensioenfonds ABP in a joint venture comprising 10 Class-A office buildings totaling 1.1 million square feet located in major office markets in Northern and Southern California and Virginia, and now owns 100 percent of the associated assets.

The acquisition gives Brandywine full ownership of several high-profile buildings including 1333 Broadway in Oakland, CA, a 10-story, 238,392 square foot office building across from Oakland's city hall; Carlsbad Airport Plaza, a three-story, 61,587 square foot office building in the prestigious Carlsbad Research Center; President's Plaza I and II in Herndon VA, two four-story office buildings comprising 196,715 square feet, each overlooking the Dulles Toll Road; and 2291 Wood Oak Drive in Herndon, VA, a six-story, 227,574 square foot office building in the 4.3 million square foot master-planned Woodland Park sub-market. At the closing of the transaction, the portfolio was 90.6 percent occupied by approximately 100 tenants.

"We are pleased to have closed on this acquisition, as it consolidates our ownership of a group of outstanding assets in the key Washington, D.C., Oakland and Southern California markets," stated Jerry Sweeney, president and chief executive officer of Brandywine Realty Trust. "At the same time, we mark the successful conclusion of a long-standing partnership with ABP and look forward to similar opportunities to work together in the future."

The imputed value for the assets at the closing was $279.5 million, and after consideration of the associated financing, resulted in a purchase price of $63.5 million for Brandywine's acquisition of ABP's 49 percent interest. The valuation represented a 6.1 percent cap rate on anticipated 2007 cash net operating income and a 6.5 percent cap rate on anticipated 2007 GAAP net operating income. The joint venture was previously accounted for by Brandywine as a fully consolidated entity and the primary accounting impact of the acquisition will be the elimination of the 49 percent minority interest.

The original joint venture was formed in 2003 between ABP, a Netherlands-based pension fund, and Prentiss Properties Trust. Brandywine merged with Prentiss in 2006.

Sonnenblik Goldman represented ABP in the sale of its 49 percent minority interest to Brandywine.

About Brandywine Realty Trust

Brandywine Realty Trust is one of the largest full-service, completely integrated real estate companies in the United States and is focused primarily on the ownership, management and development of Class-A, suburban and urban office buildings in selected markets aggregating approximately 42 million square feet. For more information, please visit Brandywine's Web site at www.brandywinerealty.com.

Forward-Looking Statements

Certain statements in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance, achievements or transactions of the Company and its affiliates or industry results to be materially different from any future results, performance, achievements or transactions expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors relate to, among other matters, the Company's ability to lease vacant space and to renew or relet space under expiring leases at expected levels; the potential loss of major tenants; interest rate levels; the availability and terms of debt and equity financing; competition with other real estate companies for tenants and acquisitions; risks of real estate acquisitions, dispositions and developments including cost overruns and construction delays; unanticipated operating costs and the effects of general and local economic and real estate conditions. Additional information or factors which could impact the Company and the forward-looking statements contained herein are included in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement these or any other forward-looking statements that become untrue because of subsequent events.

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