Printer Friendly

EASTGROUP PROPERTIES ANNOUNCES SALE AND ACQUISITION

 JACKSON, Miss., Sept. 3 /PRNewswire/ -- EastGroup Properties (AMEX: EGP) today announced the sale of its Kings Gate West Apartments land purchase-leaseback investment in Syracuse, N.Y., and the acquisition, through a tax deferred exchange transaction, of a 75 percent ownership interest in both the JetPort Commerce Park and the 56th Street Commerce Park which are located in Tampa, Fla.
 The Kings Gate land sale was for an all cash price of $4,300,000 and generated a gain of approximately $3,395,000 ($1.38 per share) for financial reporting purposes that will be recorded in the Trust's third quarter.
 The Trust acquired its 75 percent ownership interests in the JetPort Commerce Park for $1,800,000 ($19.32 per square foot) and the 56th Street Commerce Park for $1,950,000 ($16.69 per square foot). JetPort contains 124,200 square feet of office/warehouse space and is currently 92 percent leased. The 56th Street property comprises 155,800 square feet of office/warehouse/service center space and is 64 percent leased. Based on the two properties' current occupancies, the Trust will earn an annualized return of in excess of 11 percent on its total cash purchase price plus projected capital improvements to the properties.
 David H. Hoster II, president of EastGroup, stated that the two Tampa warehouse complexes offered the Trust good initial returns plus potential for increasing cash flow as occupancy is improved over time. He added that the sale of the Kings Gate land was part of the Trust's strategy to redeploy its assets in wholly owned properties in the Southeast and Southwest.
 -0- 9/3/93
 /CONTACT: N. Keith McKey, executive vice-president, chief financial officer and secretary of EastGroup Properties, 601-948-4091/
 (EGP)


CO: EastGroup Properties; Kings Gate West Apartments; JetPort Commerce
 Park; 56th Street Commerce Park ST: Mississippi, Florida IN: SU: RLE


RA-BN -- AT004 -- 8953 09/03/93 16:34 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 3, 1993
Words:316
Previous Article:BITRONICS INC. AND MODICON INC. ANNOUNCE MODCONNECT PARTNERSHIP; MULTIFUNCTION POWER MONITOR WITH MODBUS PLUS INTERFACE NOW AVAILABLE
Next Article:HERITAGE SAVINGS TO BE ACQUIRED BY PROVIDENT BANCORP
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters