Gary Carpenter, executive VP and COO of Bentall U.S., declined to breakdown the values of the individual properties included on Bentall's liquidation list. Bentall estimates the properties' aggregate value at $560 million. Their aggregate square footage is 1.7 million. Carpenter tells GlobeSt the properties will be sold as a "portfolio sale," which is being handled by Bentall's investment banking firm, Lazard Freres in New York. The decision sell the properties was based on Bentall's historical practice of selling properties "after they mature and have maxed out rents to current markets," says Carpenter.
Millennium Corporate Park consists of six buildings. Three are leased to Microsoft, another by Safeco, and multiple tenants occupy the rest. Sammamish Park Place is a two-building development occupied by Microsoft. The office park bears the same name as a new project by Opus, which is under construction adjacent Bentall's development. The properties for sale in Southern California include the 196,461-sf Bentall Executive Center in Santa Ana, the 284,369-sf One Pacific Plaza in Huntington Beach and the 487,404-sf 1888 Century Park East office tower in West Los Angeles.
Meantime, in response to rumors affecting its stock price, Bentall revealed it is discussions with its major shareholders to take the company private. Under the proposed agreement, the investment property management company SITQ Immobilier, holder of 52% of Bentall's common shares, would take the company private. Bentall says SITQ has reached an agreement with Bentree Holdings Ltd., owner of another 20% of Bentall's common shares, wherein it would support the privatization effort at $20 a share.
No agreement has yet been reached between SITQ and Bentall with respect to the proposed transaction. Moreover, Bentall says in a press release "the parties do not intend to provide any further public comment until the discussions are completed or terminated." Bentall's board of directors has established an independent committee to review the proposed transaction and make recommendations to the board. The committee has appointed RBC Dominion Securities Inc. as its financial advisor.
Bentall shares hit a 52-week low of $9.70 last April but climbed to near $19 by September. By November, it had sagged again to near $16, where it stalled for nearly a month. While it had recently recouped some of the loss sustained through November, the stock spiked to $19.50 this month, in sync with the privatization rumors.
In addition to the Puget Sound properties its selling, Bentall owns the 44-story, 932,194-sf U.S. Bank Centre building at 1420 Fifth Avenue in downtown Seattle and the newly-completed, 288,076 sf Five Newport office tower in Bellevue. The company also is in the midst of developing its 871,000-sf Summit Corporate Center in downtown Bellevue.
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