Lexington Realty Trust Acquires $302 Mln Manhattan Land Portfolio

(RTTNews) - Lexington Realty Trust (LXP) announced that it acquired a portfolio of three parcels of land in New York, New York consisting of an aggregate of 0.6 acres, which are net leased to tenants under non-cancellable 99-year leases.

The company said the aggregate purchase price was $302 million, which was funded from cash balances and Lexington's unsecured revolving credit facility.

The improvements on these parcels are owned by the tenants under Lexington's leases and currently consist of three high-rise hotels built in 2010, which contain an aggregate of about 480,000 square feet, 103 floors and 1,179 guest rooms, the company noted.

The hotels are known as the DoubleTree by Hilton Hotel New York City - Financial District, the Sheraton Tribeca New York Hotel and the Element New York Times Square West. The aggregate initial annual rent under the leases is approximately $14.9 million, which represents approximately 4.93% of the purchase price.

The total aggregate minimum rent under the leases over the 99-year term is approximately $4.5 billion.

Also, Lexington declared a regular quarterly dividend of $0.165 per common share, a 10% increase from the prior quarterly dividend of $0.15 per common share. This dividend is payable on January 15, 2014, to common shareholders of record as of December 31, 2013.