REITs Close CDO

Winthrop Realty Trust and Newkirk Realty Trust Inc., two Boston-based real estate investment trusts, have announced the closure of a collateralized debt obligation by a jointly owned venture, Concord Debt Holdings LLC.The REITs said the CDO was issued by two newly formed subsidiaries of the Concord debt platform. A total of $377 million of investment-grade-rated debt was issued, and Concord retained an equity interest in the portfolio with a notional amount of $88 million. The notes have an initial weighted average spread of approximately 50 basis points over the one-month London interbank offered rate. Newkirk announced in July that it had entered into a definitive merger agreement with Lexington Corporate Properties Trust to create Lexington Realty Trust, a REIT focused on single-tenant properties. "The closing of this CDO is the first step in both Winthrop's and Lexington's establishment of a mutually owned debt platform," said Michael L. Ashner, chairman and chief executive officer of both Newkirk and Winthrop. The companies can be found online at http://www.winthropreit.com, http://www.newkirkreit.com. and http://www.lxp.com