Douglas Emmett, Inc. (NYSE: DEI), a real estate investment trust (REIT), announced today it contributed six Class "˜A' office properties to Douglas Emmett Fund X, LLC (the "Fund"). The properties, totaling 1.4 million square feet, were originally acquired by the Company on March 26, 2008.
The Fund was formed on October 7, 2008 with initial equity commitments of $300 million. The Fund's investment strategy will be to take advantage of real estate opportunities within the Company's core submarkets using the same disciplined underwriting and leverage principles that have governed acquisitions at Douglas Emmett for more than 20 years. Upon its final closing, the Fund is expected to range from $500 million to $1 billion in equity commitments including a $150 million commitment from the Company. The Fund will be the Company's exclusive investment vehicle, with limited exceptions, and contemplates an investment period of up to 4 years followed by a value creation period of up to 10 years.
In connection with the property contribution, the Company transferred to the Fund a non-recourse 5-year secured term loan in the amount of $365 million, which was obtained in August 2008. The term loan bears interest at a floating rate equal to LIBOR plus 165 basis points; interest rate swap contracts effectively fix the rate at 5.515% for the first 4 years.
About Douglas Emmett, Inc.
Douglas Emmett, Inc. (NYSE: DEI) is a fully integrated, self-administered and self-managed real estate investment trust (REIT), and one of the largest owners and operators of high-quality office and multifamily properties located in premier submarkets in California and Hawaii. The Company's properties are concentrated in ten submarkets - Brentwood, Olympic Corridor, Century City, Santa Monica, Beverly Hills, Westwood, Sherman Oaks/Encino, Warner Center/Woodland Hills, Burbank and Honolulu. The Company focuses on owning and acquiring a substantial share of top-tier office properties and premier multifamily communities in neighborhoods that possess significant supply constraints, high-end executive housing and key lifestyle amenities. For more information on Douglas Emmett, please visit the Company's Web site at www.douglasemmett.com.
Safe Harbor Statement
Except for the historical facts, the statements in this press release regarding Douglas Emmett's business activities are forward-looking statements based on the beliefs of, assumptions made by, and information currently available to us about known and unknown risks, trends, uncertainties and factors that are beyond our control or ability to predict. Although we believe that our assumptions are reasonable, they are not guarantees of future performance and some will inevitably prove to be incorrect. As a result, our actual future results can be expected to differ from our expectations, and those differences may be material. Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends. For a discussion of some of the risks and uncertainties that could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in our Annual Report on Form 10-K filed with the Securities and Exchange Commission.
Any securities offered in the Fund are not registered under the Securities Act of 1933 and can not be offered or sold in the United States absent registration under that act or an applicable exemption from those registration requirements. Nothing in the foregoing disclosure constitutes an offer to sell any securities in the Fund, nor a solicitation of an offer to purchase any such securities.