Liberty Property Trust Completes Joint Venture of 15 United Kingdom Properties

MALVERN, Pa., Dec. 14 /PRNewswire-FirstCall/ -- Liberty Property Trust has partnered with Doughty Hanson & Co Real Estate on a 124 million pounds sterling joint venture consisting of Liberty's office and flex portfolio at Kings Hill in West Malling, County of Kent, United Kingdom. The joint venture was financed with approximately 95 million pounds of secured debt, and Liberty retains a 20% interest in the properties as well as management and leasing responsibility. Doughty Hanson owns the remaining 80%.

Liberty will receive fees for managing the assets and may receive a promotional interest if certain return thresholds are met.

Liberty sold to the joint venture 15 properties totaling 534,558 square feet, representing the majority of its Kings Hill properties. The properties are 2, 10, 17, 18, 30, 35, 39, and 50 Kings Hill Avenue; 1, 11, 30, 32 and 34 Tower View; 4 Abbey Wood Road; and 6 Alexander Grove.

Kings Hill is a development of Liberty Property Trust UK and Kent County Council, and is one of the largest and most successful mixed-use business parks in Europe. The 650-acre development has planning approval for two million square feet of commercial space, 2,600 housing units, an 18-hole golf course and village amenities.

"This transaction is consistent with Liberty's strategy to recapitalize assets and portfolios with which we have created unique value," commented Bill Hankowsky, Liberty's chief executive officer. "We will continue to work with Kent County Council in executing the Kings Hill master plan, including over one million square feet of commercial space approved for future development at the project."

Proceeds from the transaction will be used to reduce borrowings under Liberty's unsecured line of credit and for general corporate purposes. Liberty was represented by CBRE in the transaction.

About Liberty Property Trust

Liberty Property Trust is a leader in commercial real estate, serving customers in the United States and United Kingdom, through the development, acquisition, ownership and management of superior office and industrial properties. Liberty's 63 million square foot portfolio includes more than 700 properties which provide office, distribution and light manufacturing facilities to 2,100 tenants.

About Doughty Hanson & Co

Doughty Hanson & Co is one of the largest private equity firms in Europe. Operating Private Equity Funds for Europe and North America, a European Real Estate Fund and a European Technology Ventures Fund, Doughty Hanson & Co has unrivalled breadth of expertise. With offices across Europe and in the US, Doughty Hanson & Co has over 50 investment professionals managing euro 5bn of fund commitments.

The statements contained in this press release may include forward-looking statements within the meaning of the federal securities law. Although Liberty believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be achieved. As forward-looking statements, these statements involve risks, uncertainties and other factors that could cause actual results to differ materially from the expected results. These factors include, without limitation, the uncertainties affecting real estate businesses generally (such as entry into new leases, renewals of leases and dependence on tenants' business operations), risks relating to our ability to maintain and increase property occupancy and rental rates, the financial condition of tenants, the uncertainties of real estate development and construction activity, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes, potential liability relative to environmental matters and other risks and uncertainties detailed in the company's filings with the Securities and Exchange Commission. The company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.