CLP drops retail investments

BIRMINGHAM, Ala.–(BUSINESS WIRE)– Colonial Properties Trust (NYSE: CLP – News), a real estate investment trust (REIT), announced the sale of Colonial Pinnacle Turkey Creek, a 659,000 square foot retail center located in Knoxville, Tenn. for total sales proceeds of $131.7 million. The company had a 50% joint venture interest in the property. The company’s 50% interest was sold for total consideration of $65.9 million, comprised of $27.2 million in cash and the assumption and/or repayment of the company’s $38.7 million share of the existing loans secured by the property. Proceeds from the sale were used to repay a portion of the outstanding balance on the company’s unsecured line of credit and a portion of the proceeds will be used to acquire multifamily apartment communities.

Additionally, the company sold its remaining 5% interest in Colonial Promenade Alabaster II/Tutwiler II, a 420,000 square foot retail center located in Birmingham, Ala. to its joint venture partner. The company’s interest was sold for total consideration of $2.4 million, comprised of $0.4 million in cash and the joint venture partner’s assumption of the company’s $2.0 million share of the existing loan secured by the property. Proceeds from the sale were used to repay a portion of the outstanding balance on the company’s unsecured line of credit.

“The disposition of our joint venture interests in these retail assets is another step in the execution of our strategy to simplify the business and sell our non-core assets,” stated Thomas H. Lowder, Chairman and Chief Executive Officer.