BBX Capital Real Estate to Acquire 50% Stake in Florida Property Firm The Altman Companies.
M2 EQUITYBITES-October 26, 2018-BBX Capital Real Estate to Acquire 50% Stake in Florida Property Firm The Altman Companies
(C)2018 M2 COMMUNICATIONS http://www.m2.com
26 October 2018 - US-based holding company BBX Capital Corp.'s (NYSE: BBX) (OTCQX: BBXTB) BBX Capital Real Estate division and Florida, US-based multi-family property operator The Altman Companies, have entered into an agreement pursuant to which BBX Capital Real Estate has agreed to acquire a 50% membership interest in The Altman Companies, LLC for USD 22.7m, the companies said.
This deal includes membership interests in Altman Development Company, Altman-Glenewinkel Construction and Altman Management Company and interests in the manager of eight multi-family real estate developments.
Altman Companies is a real estate development company which operates a fully integrated platform covering all aspects of the development process from site selection, underwriting, design, construction, management and sale of apartment communities.
For over 50 years, The Altman Companies have developed, constructed, acquired and managed thousands of multi-family homes as well as developed and operated luxury apartment homes and condominiums.
The company is best known for its communities rented under its Altis brand. Its real estate and development activities are typically financed through a combination of internal and external equity and institutional debt.
In some instances, Altman Companies may decide to hold and operate an apartment community rather than selling it. In those cases, efforts are pursued to refinance third party equity and debt with longer term capital.
BBX Capital Real Estate has also agreed, subject to various terms and conditions, to acquire an additional 40% of the membership interests in Altman Companies for USD 9.4m in approximately four years after the closing of the initial purchase.
The seller, Joel Altman, can also, at his option, or in other predefined circumstances, require BBX Capital Real Estate to acquire the remaining 10% interest in Altman Companies for USD 2.4m.
BBX Capital Real Estate expects that The Altman Companies will continue to operate primarily as a real estate developer with Joel Altman serving as its chief executive officer.
It is anticipated that if the transaction is consummated, BBX Real Estate and Joel Altman will invest in future projects based on their relative ownership %ages in Altman Companies going forward.
Closing of the investment in Altman Companies and in the Developments is subject to the satisfaction or waiver of certain conditions, including obtaining consents from lenders and investors in the Developments. BBX Capital Real Estate anticipates completing the investment by year end, 2018.
BBX Capital Corp. (NYSE: BBX) (OTCQX: BBXTB) is a Florida-based diversified holding company whose activities include its 90% ownership interest in Bluegreen Vacations Corp. (NYSE: BXG) as well as its real estate and middle market divisions.
Since 1968, The Altman Companies have developed, constructed, acquired and managed more than 25,000 multi-family homes in Florida, Michigan, Illinois, Tennessee, Georgia, Texas and North Carolina.
((Comments on this story may be sent to firstname.lastname@example.org))
|Printer friendly Cite/link Email Feedback|
|Publication:||M2 EquityBites (EQB)|
|Date:||Oct 26, 2018|
|Previous Article:||Bahamas Development Closes Merger with Global Consortium.|
|Next Article:||Aptiv Closes USD 650m Acquisition of Winchester Interconnect.|