Item 2.01. Completion of Acquisition or Disposition of Assets.
On October 8, 2008 we sold five properties in Oakland, California (the "Northern
California or NCA transaction") for an aggregate gross sales price of
$412.5 million. The five properties contain approximately 1.7 million net
rentable square feet and are comprised of: One Kaiser Plaza ("The Ordway"); 1901
Harrison Street; 1333 Broadway; 2101 Webster Street; and 2100 Franklin Street.
The sale also included our condominium interest in a parking garage at 2353
Webster Street. The purchaser of the portfolio, an affiliate of the CIM Group
("CIM"), is unaffiliated with us.
The purchaser funded the purchase price through (i) the assumption of three
mortgage loans aggregating approximately $95.3 million; (ii) an interest free
loan of $40.0 million (with an imputed interest rate of 4.0%), due in
August 2010 which is secured by a deed of trust on each of 2101 Webster Street
and 2100 Franklin Street (the "$40.0 million loan"); and (iii) a cash payment to
us of approximately $271.6 million (or approximately $269.4 million after
estimated transaction costs). We used proceeds of the sale to repay existing
debt and to provide cash balances for general corporate purposes.
We have also granted CIM a 15 year purchase option (the "purchase option") for
the Two Kaiser Plaza land parcel adjacent to The Ordway and we have committed to
lease to CIM 150 parking spaces on that same parcel for a period of 99 years for
the benefit of The Ordway's tenants. We will be paid to manage and lease the
five properties for at least one year following the closing in exchange for a
market based fee.
As used in this Form 8-K, the terms "we" and "our" refer to Brandywine Realty
Trust and Brandywine Operating Partnership, L.P., the limited partnership
through which Brandywine Realty Trust owns its assets and conducts its
operations, together with direct and indirect wholly-owned subsidiaries of
Brandywine Operating Partnership, L.P.
Item 9.01. Financial Statements and Exhibits
(a) Not applicable.
(b) Pro Forma Financial Information.
The following pro forma financial information (unaudited) with respect to the
above transactions is filed as Exhibit 99.1 hereto:
• Pro Forma Consolidated Balance Sheet as of June 30, 2008.
• Pro Forma Consolidated Statement of Operations For the Six Months Ended
June 30, 2008 and 2007.
• Pro Forma Consolidated Statement of Operations For the Years Ended
December 31, 2007, 2006 and 2005.
• Notes to Pro Forma Consolidated Financial Statements.
(c) Not applicable.
(d) Exhibits.
99.1 Pro forma financial information (unaudited) reflecting the closing of
the Northern California transaction for Brandywine Realty Trust
99.2 Pro forma financial information (unaudited) reflecting the closing of
the Northern California transaction for Brandywine Operating
Partnership, L.P.
Signatures
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, hereunto duly authorized.
Brandywine Realty Trust
By: /s/ Howard M. Sipzner
Howard M. Sipzner
Executive Vice President and Chief Financial Officer
Brandywine Operating Partnership, L.P.
By: Brandywine Realty Trust, Its Sole
General Partner
By: /s/ Howard M. Sipzner
Howard M. Sipzner
Executive Vice President and Chief Financial Officer
Date: October 14, 2008