BRE Properties Sells $22.7 Million of Non-Core Properties; Sales Bring Two-Year Disposition Program to Effective Completion

Business Wire, Oct 3, 1997

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 3, 1997--Bringing its non-core asset disposition program to virtual completion in 24 months, BRE Properties, Inc. (NYSE:BRE) has sold two California properties for an all-cash purchase price of approximately $22.7 million.

The sales represent BRE's announced strategy to dispose of non-core assets and reinvest the proceeds into multifamily properties in key growth markets of the Western United States.

BRE sold the 169,000 s.f. El Camino shopping center, located in the Southern California community of Woodland Hills, to a privately held trust for $17,025,000. At the time of sale, El Camino was 98% leased and included an 11,000 s.f. pad for additional development. BRE marketed the property directly and received bids from 15 prospective buyers. The sale price represented an 8% capitalization rate to BRE.

In a separate transaction, BRE sold the 41,000 s.f. Skypark Professional Building, located in the Southern California city of Torrance, to a limited partnership for $5,650,000. The sale price represented a 10% capitalization rate to BRE.

Over the last two years, the company has redeployed 27 such non-strategic assets with total sales proceeds of approximately $230 million. "An important component of our strategic plan for creating shareholder value has been the orderly disposition of our non-apartment properties," said BRE's president and chief executive officer Frank C. McDowell. The roughly $20 million in non-apartment assets that remain in BRE's portfolio will be sold on an opportunistic basis over the coming quarters.

"In the aggregate, the non-core sales program has continued to sharpen our focus on BRE's demonstrated operating strengths in the ownership and management of multifamily communities," said McDowell.

Earlier this week, BRE Properties announced a $600 million transaction in which it will acquire the assets and operations of Trammell Crow Residential in the Western United States. The business combination is expected to close in November, 1997 and will expand BRE's multifamily portfolio to more than 21,000 apartment homes in 12 major markets of the West and expand BRE's operations to include development, construction and third-party management capabilities.

BRE Properties, Inc., headquartered in San Francisco, is a self-administered, self-managed and fully integrated equity real estate investment trust focusing on the acquisition and management of multifamily properties in the Western United States. Today, the Company owns 56 apartment communities totaling 13,543 units in nine major markets in California, Arizona, Washington, Oregon and Nevada. Additional information about BRE can be found on the company's web site (http://breproperties.com). -0-

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Except for the historical information contained herein, this news release contains forward-looking statements regarding Company and property performance, and is based on the Company's current expectations and judgment. Actual results could vary materially depending on risks and uncertainties inherent to general and local real estate conditions, competitive factors specific to markets in which BRE operates, legislative or other regulatory decisions, future interest rate levels or capital markets conditions. The Company assumes no liability to update this information. For more details, please refer to the Company's SEC filings, including its most recent Annual Report on Form 10-K and quarterly reports on Form 10-Q.

CONTACT: BRE Properties, Inc.

Lauren L. Barr, 415/445-6523