Boston Properties Completes Acquisition of Citigroup Center

Apr 25, 2001, 01:00 ET from Boston Properties, Inc.

    NEW YORK, April 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE:   BXP) a
 real estate investment trust, announced today that it has completed its
 acquisition of the 59-story 1.6 million square foot Citigroup Center in New
 York City at a purchase price of approximately $725 million. The seller was
 Dai-Ichi Life Investment Properties, Inc. Total investment including closing
 costs and mortgage-recording taxes totaled approximately $755 million. An
 affiliate of Deutsche Bank provided a $525 million first mortgage.
     Boston Properties completed the acquisition through a joint venture with
 affiliates of Allied Partners. Allied's affiliates have invested $35 million
 in common equity in the venture. Boston Properties has invested the balance of
 approximately  $195 million of equity required to complete the transaction,
 with approximately $66.5 million in common equity and the balance in preferred
 equity. All of the Boston Properties equity will earn a 10% priority return
 for ten years. The preferred equity and any accumulated unpaid portion of the
 priority return on Boston Properties' equity investment will be payable from
 cash flow and proceeds of any refinancing of the property before Allied's
 affiliates receive a return on their common interest.
     Boston Properties will manage and lease the property, bringing to
 4.5 million square feet of Class A office space that the Company owns and
 manages in Midtown Manhattan.  The Company's four in-service properties,
 599 Lexington Avenue, 875 Third Avenue, 280 Park Avenue and Citigroup Center,
 are all located within a five-block area bordered by 48th Street and 53rd
 Street, the heart of Midtown.   Boston Properties is also constructing two
 towers in Times Square that will total 2.3 million square feet and that
 together are 75% pre-leased to two of the "Big Five" accounting firms.
     Mortimer B. Zuckerman, Chairman of Boston Properties, said, "We are
 delighted to complete the acquisition of Citigroup Center, an irreplaceable
 landmark asset in Midtown Manhattan, one of the most supply-constrained office
 markets in the country.  With its high visibility on the New York City skyline
 and its high quality tenant roster, Citigroup Center will be a flagship
 property in the Company's portfolio."
     Citigroup Center's world-recognized silhouette was built in 1977 and was
 designed by Hugh Stubbins & Associates and Emery Roth & Sons.  The atrium,
 open-air concourse and office tower lobby were renovated in 1997.  The
 property is 100% leased and the tenants include Citigroup, O'Melveny & Myers,
 Kirkland & Ellis and AT Kearney, among other well-known tenants.  The building
 provides direct access to New York City's Five Boroughs through its prime
 location atop a major subway station.
     Boston Properties is a fully integrated, self-administered and self-
 managed real estate investment trust that develops, redevelops, acquires,
 manages, operates and owns a diverse portfolio of Class-A office, industrial
 and hotel properties.  The Company is one of the largest owners and developers
 of Class-A office properties in the United States, concentrated in four core
 markets - Boston, Midtown Manhattan, Washington, DC and San Francisco.
     This press release contains forward-looking statements within the meaning
 of the Federal securities laws. You should exercise caution in interpreting
 and relying on forward-looking statements because they involve known and
 unknown risks, uncertainties and other factors which are, in some cases,
 beyond Boston Properties control and could materially affect actual results,
 performance or achievements. These factors include, without limitation, the
 ability to enter into new leases or renew leases on favorable terms,
 dependence on tenants' financial condition, the uncertainties of real estate
 development and acquisition activity, the ability to effectively integrate
 acquisitions, the costs and availability of financing, the effects of local
 economic and market conditions, regulatory changes and other risks and
 uncertainties detailed from time to time in the Company's filings with the
 Securities and Exchange Commission.
 
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SOURCE Boston Properties, Inc.
    NEW YORK, April 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE:   BXP) a
 real estate investment trust, announced today that it has completed its
 acquisition of the 59-story 1.6 million square foot Citigroup Center in New
 York City at a purchase price of approximately $725 million. The seller was
 Dai-Ichi Life Investment Properties, Inc. Total investment including closing
 costs and mortgage-recording taxes totaled approximately $755 million. An
 affiliate of Deutsche Bank provided a $525 million first mortgage.
     Boston Properties completed the acquisition through a joint venture with
 affiliates of Allied Partners. Allied's affiliates have invested $35 million
 in common equity in the venture. Boston Properties has invested the balance of
 approximately  $195 million of equity required to complete the transaction,
 with approximately $66.5 million in common equity and the balance in preferred
 equity. All of the Boston Properties equity will earn a 10% priority return
 for ten years. The preferred equity and any accumulated unpaid portion of the
 priority return on Boston Properties' equity investment will be payable from
 cash flow and proceeds of any refinancing of the property before Allied's
 affiliates receive a return on their common interest.
     Boston Properties will manage and lease the property, bringing to
 4.5 million square feet of Class A office space that the Company owns and
 manages in Midtown Manhattan.  The Company's four in-service properties,
 599 Lexington Avenue, 875 Third Avenue, 280 Park Avenue and Citigroup Center,
 are all located within a five-block area bordered by 48th Street and 53rd
 Street, the heart of Midtown.   Boston Properties is also constructing two
 towers in Times Square that will total 2.3 million square feet and that
 together are 75% pre-leased to two of the "Big Five" accounting firms.
     Mortimer B. Zuckerman, Chairman of Boston Properties, said, "We are
 delighted to complete the acquisition of Citigroup Center, an irreplaceable
 landmark asset in Midtown Manhattan, one of the most supply-constrained office
 markets in the country.  With its high visibility on the New York City skyline
 and its high quality tenant roster, Citigroup Center will be a flagship
 property in the Company's portfolio."
     Citigroup Center's world-recognized silhouette was built in 1977 and was
 designed by Hugh Stubbins & Associates and Emery Roth & Sons.  The atrium,
 open-air concourse and office tower lobby were renovated in 1997.  The
 property is 100% leased and the tenants include Citigroup, O'Melveny & Myers,
 Kirkland & Ellis and AT Kearney, among other well-known tenants.  The building
 provides direct access to New York City's Five Boroughs through its prime
 location atop a major subway station.
     Boston Properties is a fully integrated, self-administered and self-
 managed real estate investment trust that develops, redevelops, acquires,
 manages, operates and owns a diverse portfolio of Class-A office, industrial
 and hotel properties.  The Company is one of the largest owners and developers
 of Class-A office properties in the United States, concentrated in four core
 markets - Boston, Midtown Manhattan, Washington, DC and San Francisco.
     This press release contains forward-looking statements within the meaning
 of the Federal securities laws. You should exercise caution in interpreting
 and relying on forward-looking statements because they involve known and
 unknown risks, uncertainties and other factors which are, in some cases,
 beyond Boston Properties control and could materially affect actual results,
 performance or achievements. These factors include, without limitation, the
 ability to enter into new leases or renew leases on favorable terms,
 dependence on tenants' financial condition, the uncertainties of real estate
 development and acquisition activity, the ability to effectively integrate
 acquisitions, the costs and availability of financing, the effects of local
 economic and market conditions, regulatory changes and other risks and
 uncertainties detailed from time to time in the Company's filings with the
 Securities and Exchange Commission.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X77018140
 
 SOURCE  Boston Properties, Inc.