Crescent Reports $1.2B in JV Transactions

Crescent Real Estate Equities, a real estate investment trust based in Fort Worth, Texas, has announced that it is entering into joint venture transactions valued at $1.2 billion involving five of its office properties.The five properties -- The Crescent, Trammell Crow Center, and Fountain Place in Dallas, and the Houston Center and Post Oak Central in Houston -- are to be sold in two phases. The first phase involves a joint venture of three of the properties, valued at $898.5 million, with JP Morgan Asset Management, whereby JPM will hold a 60% interest in the properties. Crescent said it is negotiating with another institutional partner to further reduce the office REIT's stake in these properties to 24%. JPM is also acquiring a 76% interest in the other two properties, valued at $320.5 million and totaling 2.3 million square feet, leaving Crescent with a 24% interest in them, the REIT said. Crescent said it expects to generate $316 million in net cash proceeds and to post a $211 million gain on the sale of these interests in the fourth quarter. The REIT will continue to manage and lease the properties.