SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________
FORM 8-K
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): December 18, 1997
(December 10, 1997)
GLENBOROUGH REALTY TRUST INCORPORATED
(Exact name of Registrant as
Specified in its Charter)
Maryland
(State or Other Jurisdiction
of Incorporation)
001-14162
(Commission File Number)
94-3211970
(IRS Employer Identification No.)
400 South El Camino Real, Suite 1100
San Mateo, CA 94402
(650) 343-9300
(Address, Including Zip Code, and Telephone Number, Including
Area Code, of Registrant's Principal Executive Offices)
Page 1 of 5
<PAGE>
Item 5. OTHER EVENTS.
On December 10, 1997, Glenborough Realty Trust Incorporated (the "Company")
announced that it has entered into a definitive agreement to acquire a portfolio
of 14 properties, has agreed to acquire an additional office property, and has
agreed to rescind a contract to acquire certain real estate assets from two
partnerships. Attached hereto as Exhibit 99 are excerpts from the December 10,
1997 press release making such announcements.
Item 7. Exhibits
99 Excerpts from the December 10, 1997 press release.
Page 2 of 5
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GLENBOROUGH REALTY TRUST INCORPORATED
December 18, 1997 By: /s/ Terri Garnick
Terri Garnick
Senior Vice President,
Chief Accounting Officer,
Treasurer
(Principal Accounting Officer)
Page 3 of 5
<PAGE>
EXHIBIT INDEX
Exhibit Description
- -------------------- --------------------------------------------------------
99 Excerpts from the December 10, 1997 Press Release.
Page 4 of 5
<PAGE>
Exhibit 99
SAN MATEO, CALIFORNIA, DECEMBER 10, 1997 - Glenborough Realty Trust
Incorporated (NYSE: GLB) a diversified real estate investment trust, announced
that it has entered into two separate contracts to acquire 15 properties for
$474 million.
The Company has signed a definitive agreement to acquire a portfolio of 14
properties from Windsor Realty Fund II, a co-investment joint venture of General
Investment Development, Spaulding & Slye and the pension fund of E.I. DuPont de
Nemours, for a combined acquisition cost of $423 million including estimated
closing costs and capital expenses. The purchase price will include assumption
of approximately $160 million of debt and the balance in cash. The portfolio
will have an expected first year unleveraged yield of 9.5% and includes 13
suburban office properties and one office/flex property with a total of
3,383,240 square feet and a combined occupancy of 96%. The properties are
located in the east and mid-west and are concentrated in suburban Washington,
D.C., Chicago, Atlanta, Boston, Philadelphia, Tampa and Cary, NC. The portfolio
was marketed by the capital markets group of Spaulding and Slye.
In addition, the Company has agreed to acquire the Thousand Oaks office
complex in Memphis, Tennessee for a total acquisition cost of $51 million with
an expected first year unleveraged yield of 9.5%. This complex, which was built
between 1986 and 1990, consists of three buildings with a total of 418,457
square feet and approximately 10 acres which is suitable for development of
182,000 square feet of office space. This property is currently 92% occupied and
is being acquired from affiliates of CIGNA - the second acquisition in 1997 by
Glenborough from CIGNA affiliated entities.
The Company anticipates closing both transactions in January 1998; however,
there can be no assurance that either or both transactions will be completed.
Concurrently, Glenborough has agreed to rescind a contract to acquire
approximately $94.5 million of real estate from two real estate partnerships -
Rancon Realty Funds IV and V. Glenborough Corporation, an Associated Company,
will continue to manage the partnerships for the foreseeable future under the
existing contract with the partnerships.
Certain statements in this release, such as the Company's expected
unleveraged yields from the pending acquisitions described above and the pro
forma contribution to net operating income by product type for the year to date
acquisitions, constitute "forward-looking statements" and involve risks,
uncertainties and other factors which may cause the actual outcome to be
materially different from the outcome expressed or implied by such statements.
Such risks and uncertainties include general economic conditions, local real
estate conditions, the possibility that some or all of the contemplated
acquisitions may not be completed, the performance of recently acquired
properties, and other risks detailed from time to time in Glenborough's
Securities and Exchange Commission filings.
Glenborough is a self-administered and self-managed REIT with a diversified
portfolio of 111 properties including industrial, office, office/flex,
multifamily, retail and hotel properties. In addition, two Associated Companies
control similarly diversified portfolios comprising 51 properties. Combined, the
portfolios encompass over 16 million square feet and are spread among 24 states
throughout the country.
Page 5 of 5
<PAGE>
