Behringer Harvard Grows Office Holdings to 4.8B

DALLAS -- Commercial real-estate investor Behringer Harvard on Wednesday completed its $1.4 billion acquisition of the subsidiaries of Toronto-based IPC US REIT, boosting the office holdings in its REIT I portfolio to roughly $4.8 billion.

In tandem with closing that deal, Dallas-based Behringer Harvard said it has closed on a $500 million credit facility to help finance the IPC US REIT deal and other acquisitions. Of that amount, $300 million comes as a revolving credit facility and $200 million as a term loan. Arranging the transaction were Wachovia Securities and KeyBanc Capital Markets, part of KeyCorp.

Behringer Harvard announced its acquisition of IPC US REIT, which was traded on the Toronto Stock Exchange, in August. The purchase included $600 million paid for equity and the assumption of $800 million in debt.

The former IPC US REIT's assets span 9.6 million square feet of rentable space in major U.S. cities. They include 500 East Pratt in Baltimore; McDonald Investment Center in Cleveland; and Bank of America Plaza in Las Vegas, among others.

The acquired portfolio now is part of Behringer Harvard's REIT I Inc., a publicly registered but nontraded real estate investment trust. With the acquisition completed, REIT I now holds 76 office properties totaling more than 25.1 million square feet of rentable space.

"This is a strategic purchase that further diversifies the portfolio from a geographic perspective and at the same time strengthens its presence in existing markets such as Philadelphia, Houston and Baltimore," Behringer Harvard founder and chief executive Robert Behringer said in a statement.

Behringer Harvard, formed in 2001, also manages its Opportunity REIT I, with about $1 billion in assets; Short-Term Opportunity Fund I LP, with $200 million; and Mid-Term Value Enhanced Fund I LP, with $40 million.