BRE Properties sells $50 million of 7.20% senior unsecured notes

Business Wire, June 23, 1997

SAN FRANCISCO--(BUSINESS WIRE)--June 23, 1997--BRE Properties Inc. (NYSE:BRE) today announced the closing of a $50 million issue of 7.20% senior unsecured notes due June 15, 2007.

Proceeds from the offering will be used to repay borrowings under the company's lines of credit and for other general corporate purposes, including acquisitions of apartment communities.

"One of BRE's core business strategies is the maintenance of a strong balance sheet," said Frank C. McDowell, BRE's president and chief executive officer. "This debt transaction, coupled with the $91.2 million in proceeds from BRE's common stock offering last month, provides the company with substantial financial flexibility to support future growth."

The $50 million notes were rated BBB by Standard & Poor's, Baa2 by Moody's, and BBB by Duff & Phelps. The offering was underwritten by Morgan Stanley Dean Witter, BancAmerica Securities Inc., Merrill Lynch & Co., and Salomon Brothers Inc. Requests for copies of the final Prospectus Supplement can be obtained by contacting Morgan Stanley Dean Witter's Prospectus Department at 212/761-4000.

In other news, BRE announced the recent sale of a 60-unit apartment community in Phoenix, with net sales proceeds of approximately $1.65 million. "BRE's investment strategy includes the selective sales of properties which we believe have reached maximum cash-flow growth potential," said Jay W. Pauly, BRE's chief operating officer. "Investors can expect to see BRE reinvest such proceeds into assets we believe have greater long-term cash flow growth prospects."

BRE Properties Inc., headquartered in San Francisco, is a self-administered, self-managed and fully integrated real estate investment trust (REIT) focusing on the ownership and management of multifamily properties in the Western United States. BRE owns and operates 54 apartment communities totaling 12,955 units in nine major markets in California, Arizona, Washington, Oregon and Nevada.

CONTACT: BRE Properties Inc., San Francisco

Lauren L. Barr, 415/445-6523