MetLife Sub Buys Trizec's Stake in Sears Tower

Metropolitan Insurance and Annuity Co., a subsidiary of New York-based MetLife, has acquired Trizec Properties' interests in Chicago's Sears Tower for $9 million, freeing the Chicago-based real estate investment trust from its commitment to take over full ownership of the property this year.MetLife holds a first mortgage on the property and has now taken on Trizec's interests in the building, which include a second mortgage. TrizecHahn, Trizec's predecessor company, had acquired the Sears Tower interests in 1997, Trizec said. This means that Trizec will not be adding on the approximately $766 million of mortgage debt it would have assumed if it had taken over Sears Tower. Trizec will continue to manage and lease the property on behalf of MetLife. The REIT said it does not expect the sale to have any impact on its funds from operations for 2003. The property has become less sought after in the wake of the Sept. 11 terrorist attacks.