BIRMINGHAM, Ala.--(BUSINESS WIRE)--Colonial Properties Trust (NYSE: CLP) announced that it has completed the sale of Colonial Promenade Alabaster II and two build-to-suit outparcels at Colonial Promenade Tutwiler Farm II, both located in Birmingham, Ala., to a joint venture for a gross sales price of $48.5 million. Colonial Properties Trust retained a 5 percent ownership interest in the joint venture and will continue to lease and manage the properties. The company estimates the sale will generate a gain of approximately $0.13 to $0.15 per diluted share in earnings and funds from operations, all of which will be recognized in the fourth quarter of 2007.
”This transaction highlights the value we are able to create with our commercial development expertise, and allows us to recycle capital to fund a portion of our development pipeline,” said Reynolds Thompson, chief executive officer of the company. “The development of mixed-use and commercial assets continues to provide a complimentary source of earnings for our multifamily company.”
Opened in the third quarter of 2007, the 355,200-square-foot Colonial Promenade Alabaster II is anchored by Target, J.C. Penney and Best Buy as well as two other mid-size anchors and is currently 98 percent leased. The gross proceeds from the Colonial Promenade Alabaster II sale were $38.5 million, representing a stabilized capitalization rate of 7.4 percent, and will be utilized to fund future developments. The two build-to-suit outparcels at Colonial Promenade Tutwiler Farm II comprised a total of 65,000 square feet for Haverty’s and hhgregg. The gross proceeds from the sale were $10.0 million and are anticipated to be reinvested into multifamily properties.
Colonial Properties Trust is a multifamily real estate investment trust (REIT) that creates additional value for its shareholders through the development and management of mixed-use and commercial projects. As of September 30, 2007, the company owned or managed 39,046 apartment units, 16.5 million square feet of office space and 7.6 million square feet of retail shopping space located in key Sunbelt states from Virginia to California. Headquartered in Birmingham, Ala., Colonial Properties Trust is listed on the New York Stock Exchange under the symbol CLP and is included in the S&P SmallCap 600 Index. For more information, please visit the company’s website at www.colonialprop.com.
Safe Harbor Statement
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Certain statements in this press release may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause the company's actual results, performance, achievements or transactions to be materially different from the results, performance, achievements or transactions expressed or implied by the forward looking statements. Factors that impact such forward looking statements include, among others, real estate conditions and markets; performance of affiliates or companies in which we have made investments; legislative or regulatory decisions; our ability to continue to maintain our status as a REIT for federal income tax purposes; the effect of any rating agency action; the cost and availability of new debt financings; level and volatility of interest rates or capital market conditions; effect of any terrorist activity or other heightened geopolitical crisis; or other factors affecting the real estate industry generally.
Except as otherwise required by the federal securities laws, the company assumes no responsibility to update the information in this press release.
The company refers you to the documents filed by the company from time to time with the Securities and Exchange Commission, specifically the section titled "Risk Factors" in the company's Annual Report on Form 10-K for the year ended December 31, 2006, as may be updated or supplemented in the company's Form 10-Q filings, which discuss these and other factors that could adversely affect the company's results.