MELVILLE, N.Y.--(BUSINESS WIRE)--Sept. 21, 2005--Reckson Associates Realty Corp. (NYSE: RA) today announced the closing of certain transactions relating to the public offering in Australia of approximately A$263 million (approximately US$202 million) of units in Reckson New York Property Trust, a newly-formed Reckson-sponsored property trust (the LPT). The LPT is scheduled to begin trading on the Australian Stock Exchange (ASX) on September 26, 2005 under the symbol RNY.

Upon completion of all the related transactions, the LPT will own a 75% indirect interest in 25 suburban core plus office properties acquired from Reckson, containing approximately 3.4 million square feet, for a total purchase price of approximately US$563 million. Reckson will retain a 25% indirect interest in these properties. The transaction has been structured to be completed in three tranches.

In today's tranche I closing, the LPT purchased a 75% indirect interest in 17 suburban core plus office properties, containing approximately 2.0 million square feet, for a purchase price of approximately US$367 million. In the tranche II and tranche III closings, the LPT will purchase a 75% indirect interest in an additional three and five properties, respectively, which are expected to close in the first and fourth quarters of 2006, respectively. Reckson intends to use the proceeds from the tranche I closing of approximately US$128 million, net of debt assumed by the LPT, to fund a portion of the Company's recently announced acquisitions and for the repayment of outstanding indebtedness.

Scott Rechler, Reckson's President and Chief Executive Officer, stated, "The formation of the Australian LPT will further our goal of operating locally while financing globally. We believe our markets offer significant opportunities to acquire attractive core plus investments and having global financing options such as the Australian vehicle will better enable us to be more competitive in pursuing these investment opportunities throughout all real estate cycles."

The LPT has a two-year option to purchase an additional ten suburban core plus office properties from Reckson, comprising approximately 1.2 million square feet, to be priced at fair market value at the time the option is exercised. Reckson anticipates that it will continue to maintain a 25% indirect interest in future core plus investments with the LPT.

Core plus assets present attractive investment opportunities for Reckson to increase its market presence and franchise value and leverage its operating infrastructure to produce increased margins. Generally, Reckson will continue to wholly own strategic assets, which are Class A trophy office properties in key markets that define Reckson's franchise and enhance its competitive advantage, as well as value creation opportunities, which include repositioning, development and redevelopment projects.

Properties were contributed by Reckson to the LPT based upon an estimated 2005 net operating income (NOI) yield of 7.15% and a 2006 NOI yield of 7.91%, excluding 225 High Ridge Road which Reckson recently acquired and contributed to the LPT at cost. Reckson anticipates a 2006 annualized after-tax cash yield on its LPT interest of approximately 18% including the one-time fees, and of approximately 15% excluding the one-time fees but including the ongoing recurring fees.

The LPT is managed by Reckson Australia Management Limited (RAML), an Australian licensed Responsible Entity which is wholly owned by Reckson Operating Partnership, L.P. Other affiliates of Reckson serve as property manager, leasing agent, asset manager, and construction manager and provide other services to the properties in the LPT portfolio.

Reckson Associates Realty Corp. is a self-administered and self-managed real estate investment trust (REIT) specializing in the acquisition, leasing, financing, management and development of Class A office properties.

Reckson's core growth strategy is focused on the markets surrounding and including New York City. The Company is one of the largest publicly traded owners, managers and developers of Class A office properties in the New York Tri-State area, and wholly owns, has substantial interests in, or has under contract, a total of 91 properties comprised of approximately 19.0 million square feet. For additional information on Reckson Associates Realty Corp., please visit the Company's web site at www.reckson.com.

The offering referred to above was made outside of the United States. Nothing contained herein shall be construed as an offering of the interests of the LPT.

Certain matters discussed herein, including guidance concerning the Company's future performance, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Although the Company believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, forward-looking statements are not guarantees of results and no assurance can be given that the expected results will be delivered. Such forward-looking statements are subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those expected. Among those risks, trends and uncertainties are the general economic climate, including the conditions affecting industries in which our principal tenants compete; financial condition of our tenants; changes in the supply of and demand for office properties in the New York Tri-State area; changes in interest rate levels; changes in the Company's credit ratings; changes in the Company's cost of and access to capital; downturns in rental rate levels in our markets and our ability to lease or re-lease space in a timely manner at current or anticipated rental rate levels; the availability of financing to us or our tenants; changes in operating costs, including utility, real estate taxes, security and insurance costs; repayment of debt owed to the Company by third parties; risks associated with joint ventures; liability for uninsured losses or environmental matters; and other risks associated with the development and acquisition of properties, including risks that development may not be completed on schedule, that the tenants will not take occupancy or pay rent, that development or operating costs may be greater than anticipated, or that closing of the proposed acquisitions do not occur as expected. For further information on factors that could impact Reckson, reference is made to Reckson's filings with the Securities and Exchange Commission. Reckson undertakes no responsibility to update or supplement information contained in this press release.

CONTACT: Reckson Associates Realty Corp.
Scott Rechler, CEO / Michael Maturo, CFO,
631-694-6900
Facsimile, 631-622-6790

SOURCE: Reckson Associates Realty Corp.