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| FOR IMMEDIATE RELEASE | | Media Contact: |
| | | Maria Englund |
| | | (212) 843-8270 |
WELLS REAL ESTATE FUNDS
ANNOUNCES AGREEMENT TO SELL
27-PROPERTY PORTFOLIO FOR $786 MILLION
Sale Will Allow Wells to Optimize Portfolio, Capitalize on Market Gains
ATLANTA (February 28, 2005)– Wells Real Estate Funds announced today that the Wells Real Estate Investment Trust, Inc. (“Wells REIT”), a public nontraded REIT, has entered into an agreement to sell 27 office and industrial properties either wholly or jointly owned by the Wells REIT to Lexington Corporate Properties Trust (NYSE: LXP), a New York-based REIT, for $786 million. The sizable transaction, which is expected to close by the end of April 2005, represents a portion of the portfolio going full cycle, locking in significant market gains for Wells REIT investors.
The approximately 5.1 million square feet of properties committed for purchase were acquired or developed between 1999 and 2003 and are consistent with the company’s investment strategy. A majority of the properties are Class-A office buildings that have single tenants with investment-grade credit ratings. Eastdil Realty, on behalf of the Wells REIT, is brokering this transaction; a complete list of the properties to be sold is provided below.
According to Leo F. Wells III, president of Wells Real Estate Funds, the transaction should benefit both the Wells REIT and the Wells-affiliated joint venture partners participating in this transaction.
“These are all excellent properties which have increased in value, and their sale will create significant returns for our shareholders,” said Mr. Wells. “We view the potential sale as an exercise in effective portfolio management that allows us to
fine-tune our investment strategy while capitalizing on today’s attractive investment sales market to capture gains for our shareholders.”
According to Keith D. Allaire, managing director of Robert A. Stanger & Company, Inc., a Shrewsbury, New Jersey-based investment banking firm specializing in nontraded real estate investments, “The Wells REIT’s portfolio sale so early in the life-cycle of the program is virtually unprecedented in the direct participation program industry. Wells is selling selected assets as a result of the strong current capital flow to real estate,” said Allaire. He also noted the favorable reaction of analysts about the assets the portfolio will deliver to the buyer. “Overall, analysts’ comments tend to confirm the quality of Wells’ REIT acquisitions during the past few years,” said Allaire. “Harvesting profits shortly after going through the immense effort of obtaining and planting the seeds requires a detachment from emotion and strong attachment to the best interests of investors,” he concluded.
Properties included in this transaction are:
| | | | |
Major Tenant
| | Location
| | Square Feet
|
Allstate | | Indianapolis, IN | | 89,956 |
Alstom Power | | Midlothian, VA | | 99,057 |
AmeriCredit* | | Orange Park, FL | | 85,000 |
ASML | | Tempe, AZ | | 95,133 |
AT&T Wireless** | | Oklahoma City, OK | | 128,500 |
AT&T Wireless | | Harrisburg, PA | | 81,859 |
Bank of America | | Brea, CA | | 637,503 |
Capital One | | Glen Allen, VA | | 225,220 |
DaimlerChrysler | | Westlake, TX | | 130,290 |
Dana | | Farmington Hills, MI | | 112,480 |
Dana | | Kalamazoo, MI | | 150,945 |
Dial | | Scottsdale, AZ | | 129,689 |
EDS | | Des Moines, IA | | 405,000 |
Experian | | Allen, TX | | 292,700 |
Gartner*** | | Fort Myers, FL | | 62,400 |
IKON | | Houston, TX | | 157,790 |
Ingram Micro | | Millington, TN | | 701,819 |
ISS | | Atlanta, GA | | 289,000 |
John Wiley* | | Fishers, IN | | 141,047 |
Kerr-McGee | | Houston, TX | | 101,111 |
Kraft | | Suwanee, GA | | 87,219 |
| | | | |
Lucent | | Cary, NC | | 120,000 |
Metris | | Tulsa, OK | | 101,100 |
Nissan | | Irving, TX | | 268,445 |
PacifiCare | | San Antonio, TX | | 142,500 |
Transocean | | Houston, TX | | 155,991 |
Travelers Express | | Lakewood, CO | | 68,165 |
Total | | | | 5,059,919 |
* Joint venture between Wells Real Estate Fund XIII, L.P. and Wells REIT.
** Joint venture between Wells Real Estate Fund XII, L.P. and Wells REIT.
*** Joint venture between Wells Real Estate Fund XI, L.P., Wells Real Estate Fund XII, L.P., and Wells REIT.
Wells Real Estate Funds is a national real estate investment management firm that purchases real estate on behalf of Wells-sponsored investment programs. Since 1984, more than 180,000 individuals across the country have invested (through their financial representatives) in Wells-sponsored investment programs to help diversify their investment portfolios. Collectively, Wells-sponsored programs own over $6.5 billion in assets (valued at cost) totaling more than 30 million square feet of space.
This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and 21E of the Securities Exchange Act of 1934, including discussions regarding Wells’ use of proceeds and certain other factors that may affect future earnings or financial results. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. Factors that may cause actual results to differ materially include changes in general economic conditions, changes in real estate conditions, construction delays, increases in interest rates, lease-up risks, lack of availability of financing, and lack of availability of capital proceeds. This is neither an offer nor a solicitation to purchase securities.
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