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The three properties sold in tranche II were 6800 and 6900 JerichoTurnpike, a 207,583-sf and a 100,989-sf building,respectively, located on Long Island, and 710 BridgeportAve., a 452,414-sf building, located in Fairfield County,CT. Approximately $25.1 million of the proceeds are being held bya qualified intermediary in anticipation of the acquisition of areplacement property, allowing Reckson to defer the gain onsome of the property sales under a 1031 exchange.

The trust is managed by RAML, an Australian licensed responsibleentity which is wholly owned by Reckson Operating Partnership LP, an affiliate of Reckson. The REIT's $202-million public offering in Australia of units began trading on the Australian Stock Exchange on Sept. 26, 2005. In the tranche I closing, the LPT purchased a 75% indirect interest in 17 suburban core-plus office properties, containing approximately two million sf for $367 million. Upon completion of all three tranches, the LPT will own a 75% indirect interest in a total of 25 suburban core plus office properties acquired from Reckson, containing approximately 3.4 million sf. The total purchase price will be approximately $563 million. Reckson will retain a 25% indirect interest in the properties. The final tranche is scheduled to be completed in October when the company will sell the remaining five properties.

The LPT also has a two-year option to purchase an additional 10 suburban core plus office properties from Reckson, comprising approximately 1.2 million sf priced at fair market value. Last week, Reckson closed on its acquisition of a 1.6-million-sf office portfolio located in five business parks in Westchester County for approximately $255 million.