Indianapolis-based Duke Realty Corporation is selling its medical office business and remaining portfolio to a subsidiary of Healthcare Trust of America, Inc. for $2.8 billion. Duke is now positioned as a pure play domestic industrial REIT.
The transaction, which is expected to close over the second and third quarters of 2017, includes a MOB portfolio of 6.6 million square feet, comprised of 71 in-service buildings, as well as five buildings under construction. The deal also includes the company’s ownership interests in two buildings owned by unconsolidated joint ventures and 16.5 acres of land.
In short order, Duke will have divested its seven-million-square-foot medical office portfolio and platform for total gross proceeds of $2.955 billion. Last week, Duke closed a $155-million, 10-building portfolio sale to the parent entity of TriHealth, Inc.
Proceeds from the transactions will reduce leverage, fund future growth through development and acquisitions, and be used for a return of capital to shareholders through a special dividend.
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