Commitments and Contingencies

3 Months Ended

Mar. 31, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

(a) Contingent liabilities

One of the customers at our Convergence Business Park property had an option to expand as part of their lease agreement, which expired in April 2017. As part of this option, development activities were not permitted on specifically identified expansion space within the property until April 2014. From April 2014 through April 2017, the tenant had the right of first refusal on any third party’s bona fide offer to buy the adjacent land. The tenant did not exercise its option.

We are currently a party to litigation related to the release of a sublease guarantee that was provided by one of our subsidiaries.  Certain parties are seeking to invalidate the release, which freed our subsidiary from any further obligations under the sublease guarantee.  Our maximum exposure in this matter is estimated to be approximately £20 million.  We believe we have strong defenses as well as claims for reimbursement against third parties, which we intend to pursue if necessary.  We cannot at this time reliably estimate the likelihood of the outcome.

(b) Construction Commitments

Our properties require periodic investments of capital for tenant-related capital expenditures and for general capital improvements. From time to time in the normal course of our business, we enter into various construction contracts with third parties that may obligate us to make payments. At March 31, 2017, we had open commitments, including amounts reimbursable of approximately $22.8 million, related to construction contracts of approximately $352.0 million.

(c) Legal Proceedings

Although the Company is involved in legal proceedings arising in the ordinary course of business, as of March 31, 2017, the Company is not currently a party to any legal proceedings nor, to its knowledge, is any legal proceeding threatened against it that it believes would have a material adverse effect on its financial position, results of operations or liquidity.