Duke Realty to sell 20 office buildings valued at US$516.7M, acquire portfolio of mostly industrial properties in South Florida for US$450M; company's portfolio will be roughly 42% industrial when deals close

Cindy Allen

Cindy Allen

Dec 20, 2010 – Associated Press

INDIANAPOLIS, Indiana , December 20, 2010 () – Duke Realty will sell 20 office buildings valued at $516.7 million and acquire a portfolio of mostly industrial properties in South Florida for $450 million, the company said Monday.

Duke is beefing up its portfolio of industrial properties even as it dials back its suburban office real estate holdings.

When the deals close, the company's property portfolio will be about 42 percent industrial.

The company agreed to sell 20 suburban office buildings across the U.S. representing nearly 3.1 million square feet of space to its joint venture with CB Richard Ellis Realty Trust.

Duke owns a 20 percent stake in the joint venture and will reap $414 million in cash from the sale.

Cash proceeds from the transaction totaling $414 million will be used to fund property acquisitions and for general corporate purposes, including the repayment of upcoming debt maturities.

Separately, Duke agreed to buy 51 industrial properties and five office buildings representing nearly 5 million square feet of space from Premier Commercial Realty.

The deal also includes four ground leases. The properties are 85.7 percent leased.

The $450 million transaction includes the assumption of $292 million in debt with a weighted average interest rate of 5.68 percent and due dates between 2011 and 2017.

The acquisition is expected to close early next year.

Shares in Duke Realty Corp. gained 65 cents, or 5.9 percent, to $11.70 in afternoon trading.

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