ACPT Enters Definitive Agreement to Sell Puerto Rico Apartments
April 06 2009 - 3:30PM
PR Newswire (US)
ST. CHARLES, Md., April 6 /PRNewswire-FirstCall/ -- American
Community Properties Trust (ACPT) (the "Company") (NYSE Amex: APO)
announced today that it has reached an agreement to sell its
general and limited partnership interests in its Puerto Rico
apartment properties to Partners Business Equities, LLC ("PBE") and
its associates for $14.3 million. The Company expects to settle the
transaction during the third quarter of 2009. PBE is a related
party that has been formed by members of the management team of
Interstate General Properties (IGP), the Company's Puerto Rico
subsidiary, to acquire the apartment properties. The sale includes
the general partnership interest in nine partnerships which own
twelve properties with 2,653 apartments in Puerto Rico and all the
Section 8 affordable housing management contracts held by IGP. The
transaction is subject to a due diligence period, approval from the
U.S. Department of Housing and Urban Development ("HUD") and
approval from certain limited partners, as well as securing certain
financing by PBE. Steve Griessel, Chief Executive Officer, said the
sale was representative of the Company's efforts to generate free
cash flow and strengthen the Company's balance sheet by
strategically divesting certain assets. "The sale also represents a
significant positive step toward fully capitalizing our two lines
of business, operating real estate and land development, so they
are able to operate independently," said Mr. Griessel. "This is a
win-win transaction for our Company, and for the members of our
Puerto Rico management team that will purchase these partnership
interests." Mr. Griessel also said the sale is a continuation of
measures taken by the Company, including a flattening of the
management structure, a reduction in force, and additional lot
sales agreements with homebuilders, taken since October 2008 to
generate free cash flow and streamline the Company's overall
operations. "We have taken proactive and needed steps in a
difficult real estate environment that, we believe, will leave the
Company well positioned to take advantage of future opportunities,"
said Mr. Griessel. ACPT is a diversified real estate organization
with operations in Maryland and Puerto Rico, is currently listed on
the NYSE Amex Exchange under the symbol "APO." For more information
about ACPT, visit http://www.acptrust.com/. For more information
about the planned community of St. Charles, visit
http://www.stcharlesmd.com/. DATASOURCE: American Community
Properties Trust CONTACT: Craig Renner, +1-301-843-8600 Web Site:
http://www.acptrust.com/
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