Duke Realty Details $2.8B Deal
Duke Realty is headquartered in Indianapolis.
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Duke Realty Corp. (NYSE: DRE) has announced a $2.8 billion deal for its medical office portfolio. The agreement with Arizona-based Healthcare Trust of America Inc. (NYSE: HTA) involves around 70 existing buildings, five under construction and two properties that are part of joint ventures.
As part of the deal, Duke Realty will pay approximately $50 million to cover remaining construction on the five incomplete facilities. The full scope of the business involves seven million square-feet of medial office space. Late last month, Duke Realty announced the $155 million sale of more of its medical office portfolio, which included 10 properties totaling 381,000 square-feet.
Chief Executive Officer Jim Connor says "while the business has generated substantial value for our stakeholders since we acquired the business in 2007, we took advantage of strong investor appetite in the market for high quality and substantially on-campus medical office real estate. As many are aware, our medical office business evolved into a highly unique opportunity for a buyer to gain scale, quality assets and a talented operations and development team. Monetizing our medical office business at a price significantly higher than what the market previously ascribed is accretive to our net asset value per share and creates a more simplified business model with improved transparency for the long term benefit of our stakeholders while positioning our Company as the leading pure play domestic industrial REIT."
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