NEWTON, Mass.--(BUSINESS WIRE)--Service Properties Trust (Nasdaq: SVC) today announced it has completed the sale of a 138,558 square foot office property located at 1505 South Pavilion Center in Las Vegas, Nevada for $57.0 million, or approximately $411 per square foot. The sale is part of SVC’s previously announced disposition plan to sell up to $500 million of assets in connection with the acquisition of a net lease service retail portfolio from Spirit MTA REIT.
“The disposition of 1505 South Pavilion Center is the first step in executing on the company’s strategy to sell certain non-core assets acquired as part of the SMTA transaction,” said John Murray, Service Properties Trust’s President and Chief Executive Officer. “The disposition proceeds, which represent a 6.4% capitalization rate and a record price per square foot for the Las Vegas office market, will be used to reduce the company’s leverage.”
Service Properties Trust is a real estate investment trust, or REIT, which owns a diverse portfolio of hotels and net lease service and necessity-based retail properties located in 45 states, Washington, DC, Puerto Rico and Canada. SVC's properties are operated under long term management or lease agreements. SVC is managed by the operating subsidiary of The RMR Group Inc. (Nasdaq: RMR), an alternative asset management company that is headquartered in Newton, Massachusetts.
WARNING REGARDING FORWARD-LOOKING STATEMENTS
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based upon SVC’s present beliefs and expectations, but these statements and the implications of these statements are not guaranteed to occur and may not occur for various reasons, some of which are beyond SVC’s control.
- This press release states that the asset sale announced today is part of SVC’s previously announced disposition plan to sell up to $500 million of assets in connection with the acquisition of a net lease service retail portfolio from Spirit MTA REIT, a transaction which closed on September 20, 2019. SVC cannot be sure that it will be able to sell additional assets or that any additional assets it may sell, when combined with proceeds from previous sales, will aggregate $500 million. Further, SVC is not obligated to continue to pursue this disposition plan and it may elect to abandon pursuit of this disposition plan at any time. If SVC does not complete its disposition plan, its credit ratings may be adversely impacted and it may be limited in pursuing its business strategies.
- This press release states that SVC will use the net proceeds from the sale of assets announced today to reduce leverage. However, SVC may elect to use these proceeds for other reasons. Further, any reduction in SVC’s leverage that may result from any repayment of its debt with these proceeds may be offset by future borrowings that SVC may incur.
For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Except as required by law, SVC does not intend to update or change any forward-looking statements as a result of new information, future events, or otherwise.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.