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| Camden Property Trust Announces Spin-Off of $248 Million in Assets |
HOUSTON, May 26 /PRNewswire/ -- Camden Property Trust (NYSE: CPT) announced today that it has entered into a definitive agreement to form a real estate investment venture with a large corporate pension fund represented by Schroder Real Estate Associates. Under the terms of the agreement, the pension fund will own an 80% interest in the newly formed Sierra-Nevada Multifamily Investments, LLC. Camden will be the managing member of the LLC owning 20%, and will provide property management and asset management services to the company for a fee. Sierra-Nevada will own 19 apartment communities primarily in Las Vegas, containing 5,119 apartment homes from the Nevada portfolio of assets acquired by Camden in its recent merger with Oasis Residential, Inc. The assets are valued at $248 million and will be financed with approximately 20% equity and 80% debt. Sierra-Nevada will assume $9.9 million of existing indebtedness. Camden is arranging additional debt financing of approximately $190 million to fund the balance of the investment. The debt is expected to be ten-year fixed rate first lien mortgage financing with an average rate of approximately 7%. Camden anticipates using the estimated $228 million in net cash proceeds upon completion of this transaction to reduce its outstanding short-term debt. Camden's Chairman, Ric Campo said, "When we entered into the Oasis merger, we stated that we wanted to capitalize on the dominant position as the largest apartment owner in Las Vegas, yet we recognized the need to reduce our overall exposure in the Las Vegas market. This transaction effectively completes the Oasis merger. It allows us to continue to manage all of the Las Vegas assets under the well established Oasis brand." Consummation of these transactions is subject to the satisfaction of various conditions, including the execution of final agreements for funding the investment and final loan commitments. There can be no assurance that Camden will enter into such agreements or successfully completing the transactions. Camden Property Trust is a fully integrated real estate investment trust (REIT) engaged in the ownership, development, acquisition, marketing, management, and disposition of multifamily apartment communities. Camden Property Trust owns interest in and operates 151 properties containing 50,077 apartment homes in the Sunbelt and Midwestern markets from Florida to California. Upon completion of thirteen properties under development, the Company's portfolio will increase to 55,405 apartment homes in 164 properties. In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which Camden operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain credit risks and uncertainties, which are difficult to predict. For more information, please contact Richard J. Campo or D. Keith Oden at 800-9CAMDEN or 713-964-3555, or visit our web site at http://www.camdenprop.com.SOURCE Camden Property Trust
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CONTACT:
Richard J. Campo or D. Keith Oden, both of
Camden Property Trust, 800-9CAMDEN, or 713-964-3555
