BRE Properties Prices $50 Million of 8.5% Preferred Securities

Business Wire, Jan 27, 1999

SAN FRANCISCO--(BUSINESS WIRE)--Jan. 26, 1999--BRE Properties, Inc. (NYSE:BRE) announced today the pricing of a public offering of 2,000,000 shares of 8.5% Series A Cumulative Redeemable Preferred Stock at $25 per share.

The preferred stock, which may be redeemed by the company at $25 per share, plus accrued and unpaid dividends, on or after January 29, 2004, has no stated maturity, sinking fund or mandatory redemption, and is not convertible into any other security of the company.

The company granted the underwriters an over-allotment option for up to 300,000 shares. Net proceeds to the company from this offering, after all anticipated issuance costs but before any exercise of the underwriters' over-allotment option, are estimated to be approximately $48.3 million. Net proceeds will be used to reduce borrowings under the company's unsecured credit facility. Of the $400 million available to the company under the credit line, approximately $254 million was drawn prior to the application of proceeds from the current offering.

The preferred stock, which has been rated BBB- by Standard & Poor's and Baa3 by Moody's Investors Service, will be listed on the New York Stock Exchange. Settlement is scheduled for January 29, 1999.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

The offering was underwritten by Morgan Stanley Dean Witter; A.G. Edwards & Sons, Inc.; Merrill Lynch & Co.; and Salomon Smith Barney. Copies of the final Prospectus Supplement can be obtained from Morgan Stanley Dean Witter, Attn: Prospectus Department, 1585 Broadway, New York, NY 10036, 212/761-6675.

BRE Properties, Inc. is a self-administered, self-managed and fully integrated real estate investment trust focusing on the development, acquisition, ownership and management of multifamily properties in the Western United States. BRE owns and operates 85 apartment communities totaling 21,858 units in California, Arizona, Washington, Oregon, Nevada, New Mexico, Utah and Colorado. The company currently has six other apartment communities under development totaling 1,539 units. Additional information about BRE can be found on the company's web site (www.breproperties.com).