GE Capital Invests $90 Million
ARLINGTON, Va., Sept. 10 /PRNewswire/ -- Charles E. Smith Residential
Realty, Inc., (NYSE: SRW), the country's leading urban multifamily real estate
investment trust, announced today that through private transactions it will
raise $100 million of equity through sale of convertible preferred securities
-- $90 million of which will be sold to GE Capital, through their GE Equity
and GE Capital Real Estate groups, and $10 million will be sold to another
institutional investor.
"We are very pleased to have leading long-term investors like GE as part
of the Charles E. Smith Residential investor base," said Denny Minami, the
Company's Chief Financial Officer. "GE Capital's equity investment, and their
confidence in our company, enhance our ability to execute our urban living
strategy."
Ron Pressman, President of GE Capital Real Estate, said, "We are impressed
with the track record of Charles E. Smith Residential, and with the continued
growth potential of their strategy of focusing on strong urban lifestyle
neighborhoods."
Charles E. Smith Residential Realty will issue a total of $100 million of
convertible preferred securities. The $90 million of securities to be issued
to GE Capital entities will include convertible preferred stock and
convertible preferred operating partnership units. All of the securities to
be issued will have an annual dividend rate of the greater of 8 1/8% or the
dividend rate paid on the company's common shares, a conversion price of
$38.50, and a five-year non-call provision. The proceeds will be used to
retire debt. Goldman Sachs acted as financial advisor to Charles E. Smith
Residential in connection with the GE Capital placements.
Charles E. Smith Residential Realty, Inc. is a self-managed real estate
investment trust listed on the New York Stock Exchange (SRW). The Company and
its subsidiaries and affiliates own, acquire, develop, and manage multi-family
residential properties; and also provide a full range real estate services to
other property owners. The Company owns a portfolio of approximately 22,000
apartment units, has over 4,000 units under construction and pre-purchase
agreement, and manages an additional 3,000+ units for other owners. The total
market capitalization of the Company -- Charles E. Smith Residential Realty,
including its Operating Partnership -- is in excess of $2 billion. Investor
information including press releases about Charles E. Smith Residential Realty
is available on the Company's Web site at: http://www.smithreit.com, and also
through PR Newswire 'News on Call' by fax 800-758-5804, ext. 101271, or at:
http://www.prnewswire.com.
GE Equity, a subsidiary of GE Capital, is the private equity arm of GE.
GE Capital Real Estate invests in and finances commercial and multi-family
residential properties and provides Asset Management and Loan Servicing. GE
Capital, with assets of more than US$300 billion, is a global, diversified
financial services company with 28 specialized businesses. A wholly-owned
subsidiary of General Electric Company, GE Capital, based in Stamford, CT,
provides equipment management, mid-market and specialized financing, specialty
insurance and a variety of consumer services, such as car leasing, home
mortgages and credit cards, to businesses and individuals around the world.
GE is a diversified manufacturing, technology and services company with
operations worldwide.
This news release contains forward-looking statements regarding the
Company's outlook, which are based on assumptions about economic and market
conditions, competitive dynamics and other factors subject to a number of
risks and uncertainties, some of which are discussed in the Company's filings
with the Securities and Exchange Commission. Actual results could differ
materially.
SOURCE Charles E. Smith Residential Realty, Inc.
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Related links:
http://www.smithreit.com
CONTACT:
For Investors: Greg Samay, 703-769-1029, or
for Media: John Kurtz, 703-769-1153, both of Charles E. Smith
Residential Realty, Inc.
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