Washington REIT (WRE) announces office portfolio sale.
Washington REIT (WRE) announced today that it is under contract to sell a portfolio of twelve office properties to Brookfield Asset Management for $766 million. The strategic sale of the majority of WRE's remaining office properties is expected to accelerate the company's shift to become a pure-play multifamily REIT by the end of 2021. WRE also said that it has signed a letter of intent to sell its remaining retail properties for approximately $170 million.
WRE expects to generate approximately $870 million of net asset sale proceeds from these transactions in the third quarter. Approximately $450 million is expected to be reinvested this year into acquisition of Class-B multifamily properties in the Southeastern U.S. and another $420 million allocated toward debt repayment.
"We are announcing the most significant milestone to date in our transformation into a multifamily REIT," said Paul McDermott, President and CEO of WashREIT. "This transaction, along with sourcing multifamily expansion opportunities and our retail sales process, signals our belief that the multifamily asset class is the best vehicle to harness long-term growth for our investors."
WRE is a component of the S&P SmallCap 600 and Russell 2000 indexes with a total market capitalization of approximately $2.9 billion.
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WRE expects to generate approximately $870 million of net asset sale proceeds from these transactions in the third quarter. Approximately $450 million is expected to be reinvested this year into acquisition of Class-B multifamily properties in the Southeastern U.S. and another $420 million allocated toward debt repayment.
"We are announcing the most significant milestone to date in our transformation into a multifamily REIT," said Paul McDermott, President and CEO of WashREIT. "This transaction, along with sourcing multifamily expansion opportunities and our retail sales process, signals our belief that the multifamily asset class is the best vehicle to harness long-term growth for our investors."
WRE is a component of the S&P SmallCap 600 and Russell 2000 indexes with a total market capitalization of approximately $2.9 billion.
06/15/2021