NEW YORK, July 25 /PRNewswire-FirstCall/ -- Tarragon Corporation
(Nasdaq: TARR), a leading developer of multifamily housing for rent and for
sale, today commented on unusual trading activity in its common stock that
has occurred over the past two days and that has resulted in significant
price volatility. Tarragon's policy is not to respond to specific rumors or
speculation in the market; however, there has been no material change to
the Company's business outlook, financial position or any other aspect of
its business that would account for such trading activity.
Tarragon Chairman and Chief Executive Officer William Friedman
commented further, "We recently announced a sequential quarterly sales
increase of nearly 100% in our Florida condominium conversion communities,
demonstrating that we're continuing to manage the challenges we face in
that market. We're also making excellent progress toward our 2007 debt
reduction goals and expect to reduce consolidated and unconsolidated debt
on condominium conversion communities by approximately $125 million and
$130 million in debt on newly built, for-sale developments. Over the next
few quarters, we expect to close sales of over $600 million of completed
rental properties which are expected to generate over $450 million in debt
repayment and approximately $150 million in net cash proceeds as we execute
our strategy to improve our balance sheet before, and after, the spin-off
of our homebuilding business."
Additional Information About the Spin-Off Transaction
Tarragon has filed a preliminary proxy statement with the Securities
and Exchange Commission related to the proposed pro rata, tax-free spin-off
of its homebuilding business as an independent, publicly traded company.
The transaction, which is subject to shareholder approval, is expected to
be completed during the third quarter of 2007. Following the spin-off,
Tarragon will change its name to Sage Residential, Inc. Sage will continue
to operate its real estate services business, which provides asset and
property management, leasing and renovation services to residential and
commercial properties. Tarragon's homebuilding and development business
will be renamed Tarragon Corporation.
A definitive proxy statement, which may contain additional or different
information from that contained in the preliminary proxy statement, will be
filed with the SEC and mailed to Tarragon's stockholders prior to the
stockholders' meeting related to the spin-off transaction. Stockholders are
urged to read carefully the definitive proxy statement, when it becomes
available, as it will contain important information that stockholders
should consider before making a decision about the spin-off transaction and
related matters. In addition to receiving the definitive proxy statement
from Tarragon in the mail, stockholders will be able to obtain the
definitive proxy statement, when it becomes available, the preliminary
proxy statement and other filings containing information about Tarragon,
the spin-off transaction and related matters, without charge, at the SEC's
web site (http://www.sec.gov). Documents filed with the SEC by Tarragon
will also be available free of charge at Tarragon's web site
(http://www.tarragoncorp.com). Stockholders may obtain copies of these
documents without charge by requesting them in writing from Tarragon
Corporation, 3100 Monticello Ave., Ste. 200, Dallas, TX, 75205, or by
telephone at (214) 599-2200.
Tarragon and its executive officers and directors may be deemed to be
participants in the solicitation of proxies from Tarragon's stockholders
with respect to the proposed spin-off transaction. Information regarding
any interests that Tarragon's executive officers and directors may have in
the transaction is set forth in the preliminary proxy statement and will be
included in the definitive proxy statement, when it becomes available.
About Tarragon Corporation
Tarragon Corporation is a leading developer of multifamily housing for
rent and for sale. The Company's operations are concentrated in the
Northeast, Florida, Texas and Tennessee. To learn more about Tarragon
Corporation, visit: http://www.tarragoncorp.com
Forward-looking Statements
Information in this press release includes forward-looking statements
made pursuant of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. Actual results and the timing of certain
events could differ materially from those projected or contemplated by the
forward-looking statements due to a number of factors, including, but not
limited to, general economic conditions, interest rates, weather, the
availability of financing for development and acquisition, risks associated
with the proposed spin-off of the Company's homebuilding division as
described in the Company's SEC filings relating to the transaction, and
other risk factors outlined in the Company's SEC reports, including its
Annual Report on Form 10-K. The Company assumes no responsibility to update
forward-looking information contained herein.
TARR-G
SOURCE Tarragon Corporation
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Related links:
http://www.tarragoncorp.com
CONTACT:
Alan H. Oshiki of Broadgate Consultants, LLC,
+1-212-232-2222, aoshiki@broadgate.com, for Tarragon Corporation;
or William S. Friedman of Tarragon Corporation, +1-212-949-5000,
wfriedman@tarragoncorp.com
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