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PROPERTY TRUST OF AMERICA ANNOUNCES COMPLETION OF SHARE OFFERING AND INCREASED LINE OF CREDIT

 SANTA FE, N.M., March 25 /PRNewswire/ -- Property Trust of America (NYSE: PTR) announced today that, in its recent public offering, PTR issued a total of 8,055,000 shares. This included the exercise of the over-allotment option by the underwriting group led by Goldman, Sachs & Co., A.G. Edwards & Sons, Inc., Kidder Peabody & Co. Incorporated and Merrill Lynch & Co. PTR currently has a total of 35,235,507 shares outstanding.
 The offering was completed at a total underwriting commission cost of 4.34 percent, which is significantly less than the recent REIT industry average of 5.82 percent. PTR's principal shareholder, Security Capital Realty Incorporated, purchased 1,500,000 shares in the offering at $16.875 per share, the same price paid by the public. Security Capital Realty's ownership in PTR is currently 24 percent.
 The net proceeds of the offering, $130 million, were used to repay the outstanding balance of the line of credit, which was approximately $66.5 million. The balance of the net proceeds will be used to fund new acquisitions.
 PTR also completed an increase in its secured revolving line of bank credit to $125 million from $72 million. The line of credit gives PTR the flexibility to continue to opportunistically acquire and develop multifamily properties. PTR Chairman C. Ronald Blankenship stated that PTR's opportunities for multifamily investments continue to be very strong, with pending acquisition and development investments currently being completed in nine cities. PTR expects to have the offering proceeds fully invested in new multifamily properties and to begin to draw on its bank line of credit by the end of April.
 PTR's objective is to become the dominant real estate operating company in the southwestern United States focusing on the acquisition, development, operation and long-term ownership of multifamily properties.
 -0- 3/25/93
 /CONTACT: John Q. Collins or Jeffrey A. Cozad of Security Capital Group, 800-982-9293/
 (PTR)


CO: Property Trust of America ST: New Mexico IN: FIN SU: OFR

PS -- NY018 -- 9419 03/25/93 09:18 EST
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Publication:PR Newswire
Date:Mar 25, 1993
Words:336
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