The acquisition also includes two development land parcels totaling approximately 17 acres. The parcels complement HTA's acquisition of the Duke MOB development platform, which Scottsdale, AZ-based HTA believes will allow for disciplined expansion with new and existing healthcare providers within its markets.

For Duke, the sale to HTA, when completed, will mark an exit from the MOB business. The company recently sold 10 medical office properties for $155 million to TriHealth Inc., a deal which closed last week.

Although the MOB sector had generated “substantial value” for Duke's stakeholders since the REIT acquired the platform in 2007, “we took advantage of strong investor appetite in the market for high quality and substantially on-campus medical office real estate,” says Jim Connor, Duke's chairman and CEO. “Monetizing our medical office business at a price significantly higher than what the market previously ascribed is accretive to our net asset value per share and creates a more simplified business model with improved transparency for the long term benefit of our stakeholders while positioning our company as the leading pure play domestic industrial REIT.”

Eastdil Secured is acting as exclusive financial advisor to Healthcare Trust of America, and O'Melveny & Myers LLP, San Francisco, is acting as its legal counsel in connection with the transaction. For Duke, Morgan Stanley is acting as exclusive financial advisor and Hogan Lovells US LLP is acting as legal advisor.

SCOTTSDALE, AZ—Healthcare Trust of America Inc. said Monday that it would acquire Duke Realty Corp.'s medical office portfolio and medical development platform for $2.75 billion. The all-cash deal is expected to close in several tranches during the second and third quarters. Separately, HTA on Monday announced that it had launched the sale of 39.5 million shares of common stock, proceeds of which will help fund the Duke portfolio acquisition,

HTA's announcement comes two months after published reports had Indianapolis-based Duke exploring the sale of its medical office building properties. Citing unnamed sources, Reuters reported in early March that Duke had engaged Morgan Stanley for help in finding a buyer for its MOB portfolio, which it would sell to focus on the industrial sector.

“This transaction solidifies HTA as the dominant owner and operator of medical office buildings located in key, gateway markets in the United States,” says Scott D. Peters, HTA;'s chairman and CEO. “Duke's medical office portfolio is a high quality mix of primarily on-campus properties that are uniquely well-located, with 85% located in HTA's existing key markets. In addition, we believe the combination of our best-in-class property management and leasing platform and their development platform creates a full service platform that can consistently execute and deliver disciplined growth in this expanding sector.”

The Duke portfolio includes 78 properties overall, spanning 6.1 million square feet and 94% leased, of which 14 are in development or undergoing lease-up stabilization. It includes Duke's proportionate interest in two unconsolidated joint venture entities.

The acquisition also includes two development land parcels totaling approximately 17 acres. The parcels complement HTA's acquisition of the Duke MOB development platform, which Scottsdale, AZ-based HTA believes will allow for disciplined expansion with new and existing healthcare providers within its markets.

For Duke, the sale to HTA, when completed, will mark an exit from the MOB business. The company recently sold 10 medical office properties for $155 million to TriHealth Inc., a deal which closed last week.

Although the MOB sector had generated “substantial value” for Duke's stakeholders since the REIT acquired the platform in 2007, “we took advantage of strong investor appetite in the market for high quality and substantially on-campus medical office real estate,” says Jim Connor, Duke's chairman and CEO. “Monetizing our medical office business at a price significantly higher than what the market previously ascribed is accretive to our net asset value per share and creates a more simplified business model with improved transparency for the long term benefit of our stakeholders while positioning our company as the leading pure play domestic industrial REIT.”

Eastdil Secured is acting as exclusive financial advisor to Healthcare Trust of America, and O'Melveny & Myers LLP, San Francisco, is acting as its legal counsel in connection with the transaction. For Duke, Morgan Stanley is acting as exclusive financial advisor and Hogan Lovells US LLP is acting as legal advisor.