UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
AMENDMENT NO. 6
TO
SCHEDULE 13D
Under the Securities Exchange Act of 1934
BRANDYWINE REALTY TRUST
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(Name of Issuer)
Common Stock, par value $0.01 per share
--------------------------------------------------------------------------------
(Title of Class of Securities)
105368203
--------------------------------------------------------------------------------
(CUSIP Number)
Marjorie L. Reifenberg, Esq.
Lazard Freres Real Estate Investors L.L.C.
30 Rockefeller Plaza
New York, NY 10020
(212) 632-6000
with a copy to:
Michael Movsovich, Esq.
Kirkland & Ellis LLP
Citigroup Center
153 East 53rd Street
New York, New York 10022
(212) 446-4950
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(Name, Address and Telephone Number of Person Authorized to Receive Notices
and Communications)
February 3, 2004
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].
NOTE: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-1(a) for other parties to whom copies are to be
sent.
The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act or otherwise subject to
the liabilities of that section of the Act but shall be subject to all other
provisions of the Act (however, see the Notes).
SCHEDULE 13D
------------------- ------------------
CUSIP NO. 105368203 PAGE 2 OF 12 PAGES
------------------- ------------------
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1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lazard Freres Real Estate Investors L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,610,583(1)
NUMBER OF ------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY None
EACH ------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,610,583(1)
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,583(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11)
EXCLUDES CERTAIN SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.78%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO (limited liability company)
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------------------------
(1) Assumes conversion of 901,613 Series B Preferred Units of Brandywine
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated, accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
SCHEDULE 13D
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CUSIP NO. 105368203 PAGE 3 OF 12 PAGES
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LF Strategic Realty Investors L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
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3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
560
NUMBER OF ----------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,610,023(1)
EACH ----------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 560
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,610,023(1)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,583(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.78%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN (limited partnership)
--------------------------------------------------------------------------------
------------------------
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated, accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
SCHEDULE 13D
------------------- ------------------
CUSIP NO. 105368203 PAGE 4 OF 12 PAGES
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Commonwealth Atlantic Operating Properties Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,610,023(1)
NUMBER OF ------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY None
EACH ------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,610,023(1)
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,023(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.77%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
------------------------
(1) Assumes conversion of 901,613 Series B Preferred Units of Brandywine
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated, accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
SCHEDULE 13D
------------------- ------------------
CUSIP NO. 105368203 PAGE 5 OF 12 PAGES
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Commonwealth Atlantic Land V Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Virginia
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
NUMBER OF -----------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,610,023(1)
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH None
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,610,023(1)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,023(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.77%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
------------------------
(1) Assumes conversion of 901,613 Series B Preferred Units of Brandywine
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated, accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
SCHEDULE 13D
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CUSIP NO. 105368203 PAGE 6 OF 12 PAGES
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Commonwealth Atlantic Properties Inc.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Virginia
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,610,023(1)
NUMBER OF -----------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY None
EACH -----------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,610,023(1)
-----------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,023(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.77%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
------------------------
(1) Assumes conversion of 901,613 Series B Preferred Units of Brandywine
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated, accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
SCHEDULE 13D
------------------- ------------------
CUSIP NO. 105368203 PAGE 7 OF 12 PAGES
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Commonwealth Atlantic Properties Investors Trust
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Maryland
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
None
NUMBER OF ------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY 1,610,023(1)
EACH ------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH None
------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,610,023(1)
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,023(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.77%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO (real estate investment trust)
--------------------------------------------------------------------------------
------------------------
(1) Assumes conversion of 901,613 Series B Preferred Units of Brandywine
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated, accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
SCHEDULE 13D
------------------- ------------------
CUSIP NO. 105368203 PAGE 8 OF 12 PAGES
------------------- ------------------
--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lazard Freres & Co. LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED
PURSUANT TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
1,610,583(1)
NUMBER OF ------------------------------------------------------
SHARES 8 SHARED VOTING POWER
BENEFICIALLY
OWNED BY None
EACH ------------------------------------------------------
REPORTING 9 SOLE DISPOSITIVE POWER
PERSON
WITH 1,610,583(1)
----------------------------------------------------
10 SHARED DISPOSITIVE POWER
None
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
1,610,583(1)
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN
SHARES [ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
3.78%(2)
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO (limited liability company)
--------------------------------------------------------------------------------
------------------------
(1) Assumes conversion of 901,613 Series B Preferred Units of Brandywine
Operating Partnership, L.P. (the "Partnership") into Class A Units of
the Partnership at $28 per share, the subsequent conversion of such
Class A Units of the Partnership into Common Shares of the Issuer, and
no accumulated accrued and unpaid distributions at the time of
conversion.
(2) Assumes 41,040,710 outstanding Common Shares of the Issuer as reported
in the Issuer's most recent Form 10-Q for the quarter ended September
30, 2003.
This Amendment No. 6 is filed by Lazard Freres Real Estate Investors
L.L.C., a New York limited liability company ("LFREI"), LF Strategic Realty
Investors L.P., a Delaware limited partnership ("LF Realty"), Commonwealth
Atlantic Operating Properties Inc., a Virginia corporation ("CAOP"),
Commonwealth Atlantic Land V Inc., a Virginia corporation ("CAL V"),
Commonwealth Atlantic Properties Inc., a Virginia corporation ("CAPI"),
Commonwealth Atlantic Properties Investors Trust, a Maryland real estate
investment trust ("CAPIT") and Lazard Freres & Co. LLC, a New York limited
liability company ("Lazard" and together with LFREI, LF Realty, CAOP, CAL V,
CAPI and CAPIT, the "Reporting Persons"). Capitalized terms used herein but not
defined shall have the meanings ascribed thereto in the Schedule 13D dated July
31, 1999, as amended, filed by the Reporting Persons (as amended, the "Initial
Schedule 13D"). This Amendment No. 6 hereby amends and supplements the Initial
Schedule 13D. All items not described herein remain as previously reported in
the Initial Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
(a) As a result of the sale of Preferred Units to Brandywine
Operating Partnership, L.P., a Delaware limited partnership (the "Partnership"),
as described in Item 5(c), CAOP owns of record and beneficially 901,613
Preferred Units, subject to the Partnership's agreement to acquire such
Preferred Units on or prior to March 15, 2004 as described in Item 5(c). Each of
these 901,613 Preferred Units has a stated value of $50.00 and may be
converted at the option of CAOP for Class A Units at a conversion price of
$28.00 per share.
Assuming the conversion by CAOP of its Preferred Units into Class A
Units at a conversion price of $28.00 per share, the subsequent conversion of
such Class A Units into Common Shares and no accumulated, accrued and unpaid
distributions at the time of conversion, the Reporting Persons would
beneficially own Common Shares of the Issuer as follows:
1. CAOP will own of record and beneficially 1,610,023, or 3.77%,
of the outstanding Common Shares;
2. CAL V, as a shareholder of CAOP, may be deemed to beneficially
own 1,610,023, or 3.77%, of the outstanding Common Shares;
3. CAPI, as the sole shareholder of CAL V and a shareholder of
CAOP, may be deemed to beneficially own 1,610,023, or 3.77%, of the outstanding
Common Shares;
4. CAPIT and LF Realty, as shareholders of CAPI, may be deemed to
beneficially own 1,610,023, or 3.77%, of the outstanding Common Shares;
5. LF Realty may be deemed to beneficially own 1,610,583 Common
Shares (560 of which it owns of record and beneficially, and 1,610,023 of which
it may be deemed to beneficially own as a shareholder of CAPI and CAPIT), or
3.78%, of the outstanding Common Shares;
6. LFREI, as the general partner of LF Realty, may be deemed to
beneficially own 1,610,583, or 3.78%, of the outstanding Common Shares; and
7. Lazard, as the managing member of LFREI, may be deemed to
beneficially own 1,610,583, or 3.78%, of the outstanding Common Shares.
LFREI and Lazard disclaim beneficial ownership of any of the Common
Shares reported in this statement.
(b) Assuming full conversion in each case as described above, CAOP
would have the power to vote or dispose of or direct the vote or disposition of
the 1,610,023 Common Shares it owns of record. CAL V, as a shareholder of CAOP,
may be deemed to have the shared power, along with CAPI, to direct the vote or
disposition of the Common Shares owned by CAOP. CAPI, as the direct and indirect
shareholder of CAOP, may be deemed to have the sole power to direct the vote or
disposition of the Common Shares owned by CAOP. CAPIT as a shareholder of CAPI
may be deemed to have the shared power, along with LF Realty, to direct the vote
or disposition of the Common Shares held by CAOP. LFREI and Lazard would each
have the sole power to direct the vote and disposition of 1,610,583 Common
Shares representing the 1,610,023 Common Shares held by CAOP and the 560 Common
Shares held indirectly by LF Realty. LF Realty has the sole power to direct the
vote and disposition of the 560 Common Shares it owns of record.
(c) On February 3, 2004, CAOP and the Partnership entered into
that certain Purchase Agreement, dated as of February 3, 2004 (the "Purchase
Agreement"), by and between CAOP and the Partnership, pursuant to which CAOP
agreed to sell, assign, transfer, convey and deliver to the Partnership, and the
Partnership agreed to accept, acquire and take delivery of, an aggregate number
of 1,950,000 Preferred Units, subject to the terms and conditions of the
Purchase Agreement. Pursuant to the terms of the Purchase Agreement, on February
6, 2004 the Partnership acquired from CAOP 1,048,387 Preferred Units for an
aggregate purchase price of $50,000,000 plus $386,304.69 of accumulated, accrued
and unpaid distributions on the Preferred Units sold through February 6, 2004,
or approximately $48.06 per unit, and agreed to acquire from CAOP, subject to
certain conditions set out in the Purchase Agreement, 901,613 additional
Preferred Units for an aggregate purchase price of $43,000,000 (plus any
accumulated, accrued and unpaid distributions through the closing date), or
approximately $47.69 per unit (not including accumulated, accrued and unpaid
distributions through closing), on or prior to March 15, 2004.
(e) As of February 6, 2004, each of the Reporting Persons ceased
to be a beneficial owner of more than five percent of the outstanding Common
Shares.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH
RESPECT TO SECURITIES OF THE ISSUER.
As discussed above, on February 3, 2004, CAOP and the Partnership
entered into the Purchase Agreement, pursuant to which CAOP agreed to sell,
assign, transfer, convey and deliver to the Partnership, and the Partnership
agreed to accept, acquire and take delivery of, an aggregate number of 1,950,000
Preferred Units, subject to the terms and conditions of the Purchase Agreement.
Pursuant to the terms of the Purchase Agreement, the Partnership acquired from
CAOP 1,048,387 Preferred Units on February 6, 2004 and agreed to acquire from
CAOP, subject to certain conditions set out in the Purchase Agreement, 901,613
additional Preferred Units on or prior to March 15, 2004.
In connection with the purchase and sale transactions contemplated by
the Purchase Agreement, General Electric Capital Corporation (the "Secured
Party") released its lien on and security interest in the 1,048,387 Preferred
Units sold to the Partnership, which Preferred Units were pledged to the Secured
Party pursuant to the Amended and Restated Pledge and Security Agreement, dated
as of March 22, 2001 (as amended, the "Pledge Agreement"), by and between the
Secured Party and CAOP, and the Amended and Restated Subordinate Pledge and
Security Agreement, dated as of March 22, 2001 (as amended, the "Subordinate
Pledge Agreement"), by and between the Secured Party and CAOP. The Secured Party
also has agreed to release the additional 901,613 Preferred Units pledged
pursuant to the Pledge Agreement and the Subordinate Pledge Agreement in
connection with the acquisition by the Partnership of such Preferred Units on or
prior to March 15, 2004.
ITEM 7. MATERIALS TO BE FILED AS EXHIBITS.
Exhibit 99.1 -- Purchase Agreement, dated as of February
3, 2004, by and between Brandywine
Operating Partnership, L.P. and Commonwealth
Atlantic Operating Properties Inc.
SIGNATURE
After reasonable inquiry and to the best of my knowledge and
belief, I certify that the information set forth in this statement is true,
complete and correct.
Date: February 6, 2004
LAZARD FRERES REAL ESTATE INVESTORS L.L.C.
By: /s/ JOHN A. MOORE
--------------------------------------
Name: John A. Moore
Title: Managing Principal and
Chief Financial Officer
LF STRATEGIC REALTY INVESTORS L.P.
By: Lazard Freres Real Estate Investors
L.L.C., as general partner
By: /s/ JOHN A. MOORE
--------------------------------------
Name: John A. Moore
Title: Managing Principal and
Chief Financial Officer
COMMONWEALTH ATLANTIC OPERATING PROPERTIES
INC.
By: /s/ GARY ICKOWICZ
--------------------------------------
Name: Gary Ickowicz
Title: President
COMMONWEALTH ATLANTIC LAND V INC.
By: /s/ GARY ICKOWICZ
--------------------------------------
Name: Gary Ickowicz
Title: President
COMMONWEALTH ATLANTIC PROPERTIES INC.
By: /s/ GARY ICKOWICZ
-------------------------------------
Name: Gary Ickowicz
Title: President
COMMONWEALTH ATLANTIC PROPERTIES INVESTORS
TRUST
By: /s/ JOHN A. MOORE
-------------------------------------
Name: John A. Moore
Title: Vice President and Chief
Financial Officer
LAZARD FRERES & CO. LLC
By: /s/ SCOTT D. HOFFMAN
-------------------------------------
Name: Scott D. Hoffman
Title: Managing Director