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Preferred Apartment Communities, Inc. Completes Disposition of Substantial Majority of its Office Portfolio to Highwoods Properties, Inc.

Nachrichtenquelle: Business Wire (engl.)
29.07.2021, 23:00  |  135   |   |   

Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") closed on its previously announced disposition of a portfolio of five office properties and one office real estate loan investment to Highwoods Properties, Inc. (NYSE: HIW) for an aggregate purchase price of $645.5 million, which will result in net proceeds at closing of approximately $241.5 million, after the satisfaction of approximately $404.0 million of property level debt and other closing adjustments and costs. The closing of this transaction further simplifies PAC’s investment focus with revenue going forward being derived primarily from its core Sunbelt multifamily investments.

As part of the Highwoods transaction, and as more fully described in the Company’s April 18, 2021 press release, PAC has elected to separately market Armour Yards and 251 Armour Yards (the “Armour Yards Portfolio”) outside of the Highwoods transaction. On July 22, 2021, PAC entered into an agreement to sell the Armour Yards Portfolio to Northwood Investors. The buyer’s contractual due diligence period has ended, and Northwood has posted an earnest money deposit that is non-refundable except in limited circumstances. The Armour Yards Portfolio transaction is subject to customary closing conditions and is expected to close later in the third quarter.

Joel Murphy, PAC’s Chairman and Chief Executive Officer, said: “The successful closing of the office portfolio transaction further builds upon our stated strategy to simplify our business platform which commenced in 2020 with the internalization of the external management structure and the sale of our entire student housing portfolio. We expect to utilize the cash proceeds generated from this sale (i) to continue to realign our balance sheet through calls and/or redemptions of our Series A preferred shares, (ii) to grow our core suburban Sunbelt Class A multifamily business through acquisitions and real estate loan investments, and (iii) for other corporate purposes, which may include redeeming additional preferred stock.”

Mr. Murphy continued, “Further, we are also pleased with the agreement with Northwood Investors to sell the Armour Yards Portfolio which demonstrates our ability to maximize the value of our few remaining office assets. As previously disclosed, our intention is to fully exit the office asset class through a disciplined and well-executed disposition process over time and the Armour Yards Portfolio sale is further tangible evidence of that intent.”

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Preferred Apartment Communities Aktie jetzt über den Testsieger (Finanztest 11/2020) handeln, ab 0 € auf Smartbroker.de



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Disclaimer

Preferred Apartment Communities, Inc. Completes Disposition of Substantial Majority of its Office Portfolio to Highwoods Properties, Inc. Preferred Apartment Communities, Inc. (NYSE: APTS) ("PAC" or the "Company") closed on its previously announced disposition of a portfolio of five office properties and one office real estate loan investment to Highwoods Properties, Inc. (NYSE: HIW) …

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