Orlando portfolio

Real Estate Alert, April 14, 2004

Highwoods Properties paid $171.5 million for the 80% stake it did not own in five Orlando office buildings. The stakes in the properties--Signature Place, Landmark l&2 and Capital Plaza 1&2--were sold by fund operator Miller Global Properties. The buildings encompass nearly 1.3 million sf. Capital Plaza 2 was developed in 1999.

The other buildings were constructed in the early 1980s, but renovated in 2000 or 2001. Highwoods has already lined up a buyer for a 60% stake in the five buildings. German fund operator KC Holding, working via its closed-end DLF Immobilien Portfolio, agreed to pay $127.2 million for the stake in a deal that is expected to close by midyear. In 1999 and 2000 Highwoods sold $200 million of Southeastern office properties to an earlier KC Holding fund, Dreilanderfonds.