Brandywine Buying Prentiss Properties

Brandywine Realty Trust, a Plymouth Meeting, Pa.-based office real estate investment trust, is acquiring Dallas-based Prentiss Properties in a transaction valued at about $3.3 billion.As part of the transaction, Prudential Real Estate Investors is acquiring a portfolio valued at about $753 million from Prentiss Properties, Brandywine reported. The consideration for the merger, including the portfolio sale to PREI, consists of $2.2 billion in cash, the assumption of Prentiss Properties debt, and about 35.5 million of Brandywine common shares and units. Prentiss common shareholders will receive $21.50 per share in cash and 0.690 of a Brandywine common share for each Prentiss share. After the merger is completed, Brandywine will own and manage a portfolio of 49 million square feet of office space, according to the REIT. Michael V. Prentiss, chairman of Prentiss, and Thomas F. August, president and chief executive officer of the REIT, are expected to join the Brandywine board of trustees. Several Prentiss executives are expected to come on board as well.