LOS ANGELES, July 24, 2000 (PRIMEZONE) -- Kilroy Realty Corporation (NYSE:KRC) today said the Southern California-based real estate investment trust has sold five Silicon Valley industrial buildings totaling 430,000 square feet of space to a private investment group for approximately $62 million. All the properties are located in the city of San Jose.
KRC acquired two of the buildings, 1710 Fortune Drive and 1961 Concourse Drive, in August 1997 as part of a larger portfolio purchase. The other three buildings, collectively known as Fortune Park Business Center, were purchased in early 1998. The company said it will record a gain of approximately $7 million on the transaction in its third quarter ended September 30, 2000.
Including the sale of these assets, KRC has completed approximately $103 million of property dispositions year-to-date. The proceeds will be used to fund KRC's ongoing commercial development program in key markets of Southern California.
"Now that we've successfully repositioned these properties, we're going to reinvest the capital in the ongoing development opportunities we see in our primary Southern California markets," said John B. Kilroy, Jr., KRC's president and chief executive officer.
Kilroy Realty Corporation is a Southern California-based real estate investment trust active in the office and industrial property sectors. For more than 50 years, the company has owned, developed, acquired and managed real estate assets in the coastal regions of California and Washington. Principal submarkets for KRC's current development projects include Calabasas, West Los Angeles, and coastal San Diego where the company's total development pipeline is over $545 million. At June 30, 2000, the company owned 6.3 million square feet of commercial office space and 6.2 million square feet of industrial space. More information on Kilroy Realty can be found at www.kilroyrealty.com.