CLP enters property sales option

BIRMINGHAM, Ala.–(BUSINESS WIRE)– Colonial Properties Trust (NYSE:CLP – News) announces that it has entered into an agreement providing for an option to sell certain multifamily assets.

The agreement provides for the potential sale of up to 5,659 apartment homes for an aggregate purchase price of approximately $338 million. The portfolio of properties includes 18 apartment communities located in Georgia, North Carolina, Texas and Virginia and has an average age of 25 years, and would represent a sales cap rate of approximately 6.0%. The company’s 90/10 multifamily/commercial portfolio mix target remains unchanged. Our on-going strategy is to recycle older multifamily assets to improve the multifamily portfolio’s average age, margin and capital expenditure requirements. Under the terms of the agreement, the transaction will only be completed if the company is able to identify reinvestment opportunities for the sales proceeds. In addition, the agreement provides the company with the option to cancel the contract at any point in time upon a termination payment of $250,000 to reimburse the buyer for due diligence costs. The sale of units is also subject to satisfaction of customary closing conditions. No assurance can be given that the company will complete the sale of any units under this agreement.