Also Weighing the Sale of Up to $450 Million of Current Holdings to Raise Additional Funds for Investing
Los Angeles-based Kilroy Realty Corp. priced a secondary public offering for 5.5 million shares of its common stock which could raise more than $250 million.
The company intends to use the net proceeds from the stock sale to acquire properties, including office properties and undeveloped land, to fund development and redevelopment projects, and repay some debt.
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Kilroy Realty’s portfolio includes 115 office buildings totaling 13.5 million rentable square feet. As of June 30, these properties were approximately 90.7% occupied by 545 tenants.
Kilroy currently has two fully-leased properties in San Diego and an adjacent land parcel that it may seek to develop in the future under contract for $125 million. The acquisition is expected to close in the third quarter of 2013.
As part of its current investment strategy, the REIT is also considering selling some properties and undeveloped land in its portfolio with the intent of recycling the proceeds into new investments. It has identified $150 million to $400 million of operating properties and/or undeveloped land that it could sell over the next 18 months.
The company, which operates as a REIT, has focused on real estate assets in the coastal regions of Los Angeles, Orange County, San Diego, the San Francisco Bay Area and greater Seattle.
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