SAN FRANCISCO, April 7 /PRNewswire-FirstCall/ -- BRE Properties, Inc. (NYSE: BRE) today announced the closing of a $620 million secured credit facility originated by Deutsche Bank Berkshire Mortgage for repurchase by Fannie Mae (NYSE: FNM). Details associated with the facility are as follows:

• The facility consists of two $310 million tranches; the first was drawn in full upon closing; the second is expected to be drawn on or about August 4, 2009. The second tranche has been rate-locked.
• Both tranches of secured debt will have fixed rate terms of 10 years.
• The effective composite annual cost of debt is 5.6%, inclusive of rate-hedging transactions.
• There is an interest-only period for a portion of the term for both tranches, with annual payments of principal thereafter following a 30-year amortization schedule.
• Collateral for the facility comprises 15 multifamily properties totaling 4,651 units.
• The facility provides for collateral substitutions and releases upon certain conditions.

BRE intends to use the proceeds from the credit facility for the repayment of outstanding debt obligations and general corporate purposes.

BRE will file a Current Report on Form 8-K with the Securities and Exchange Commission, which will contain a more complete description of the terms of the credit facility.

About BRE Properties, Inc.

BRE Properties, based in San Francisco, Calif., owns and manages apartment communities convenient to its residents' work, shopping, entertainment and transit in supply-constrained Western U.S. markets. BRE Properties directly owns and operates 72 apartment communities totaling 21,196 units in California, Arizona and Washington. The Company invests in communities through acquisition and development, and currently has seven properties in various stages of development and construction, totaling 2,077 units, and joint venture interests in 13 additional apartment communities, totaling 4,080 units. BRE Properties is a real estate investment trust listed in S&P MidCap 400 Index. For more information on BRE Properties, please visit our Web site at www.breproperties.com. (Property data as of 12/31/08)

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements, including statements regarding the terms and timing of draws under BRE's $620 million secured credit facility and its anticipated use of proceeds from the facility, which are based on BRE's current expectations and judgment. You should not rely on these statements as predictions of future events because there is no assurance that the events or circumstances reflected in the statements can be achieved or will occur. Forward-looking statements are identified by words such as "believes," "expects," "may," "will," "should," "seeks," "approximately," "intends," "plans," "pro forma," "estimates," or "anticipates" or their negative form or other variations, or by discussions of strategy, plans or intentions. The following factors, among others, could affect actual results and future events: delays in the draw down of the second tranche of the credit facility, the need for other uses of capital, defaults or nonrenewal of leases, increased interest rates and operating costs, failure to obtain necessary outside financing, difficulties in identifying properties to acquire and in effecting acquisitions, failure to successfully integrate acquired properties and operations, inability to dispose of assets that no longer meet our investment criteria under acceptable terms and conditions, risks and uncertainties affecting property development and construction (including construction delays, cost overruns, inability to obtain necessary permits and public opposition to such activities), failure to qualify as a real estate investment trust under the Internal Revenue Code of 1986, as amended, erosion of market fundamentals in 2009 due to the current recession, and increases in real property tax rates. The company's success also depends on general economic trends, including interest rates, tax laws, governmental regulation, legislation, population changes and other factors, including those risk factors discussed in the section entitled "Risk Factors" in the company's most recent Annual Report on Form 10-K as they may be updated from time to time by the company's subsequent filings with the Securities and Exchange Commission, or SEC. Do not rely solely on forward-looking statements, which only reflect management's analysis. The company assumes no responsibility to update this information. For more details, please refer to the company's SEC filings, including its most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q.

SOURCE BRE Properties, Inc.

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