Cousins Properties to Form New Venture with Prudential; Planned $640 Million Venture Includes Five Retail Projects and New Deve
May 03 2006 - 5:37PM
Business Wire
Cousins Properties Incorporated (NYSE: CUZ) announced today it has
reached an agreement to form a new venture (the "Venture") between
the Company and The Prudential Insurance Company of America for the
ownership, development, investment, management and leasing of
certain commercial real estate projects, including five of Cousins'
existing retail developments. Prudential reached the agreement on
behalf of institutional investors in a separate account managed by
Prudential Real Estate Investors ("PREI(R)"). Cousins would
contribute the following retail projects to the Venture: The
Avenue(R) East Cobb, The Avenue(R) West Cobb, The Avenue(R)
Peachtree City and The Avenue(R) Viera, as well as Viera
MarketCenter(R) which is adjacent to The Avenue(R) Viera. The
parties have agreed that these projects have an aggregate value of
$342.4 million, subject to an increase of up to $20.5 million if
certain conditions are satisfied with respect to Viera MarketCenter
and The Avenue West Cobb, which are both under construction.
Cousins will continue to manage and lease the contributed projects.
PREI would contribute an amount of cash equal to the aggregate
agreed value of the contributed projects, net of indebtedness, plus
the increase of up to $20.5 million as applicable. PREI's
contributions to the venture would generally be made in four
installments over the balance of 2006. The first installment of
$100 million would be made as early as June 1 if certain conditions
are satisfied, and the balance would be made in three equal
installments on June 30, September 29 and December 29. In addition,
if the leasing conditions are satisfied, additional contributions
could be required on December 29, 2006, June 30, 2007 and December
31, 2007, in an aggregate amount of up to $20.5 million. Cousins
will direct and manage the investment of the cash contributed by
PREI. Cousins expects that the Venture would primarily use the PREI
contributions to pursue development opportunities. The venture
formation is subject to conditions and approvals. The parties
expect those conditions and approvals to be satisfied and obtained
prior to the end of May 2006. Consistent with an existing venture
formed between the parties in 1998, PREI and Cousins would
generally each have a 50% interest in the Venture. However,
following the December 2006 contribution, generally PREI and
Cousins would have economic interests in the contributed projects
of 88.5% and 11.5%, respectively. With regard to new development
projects, beginning with the first contribution and, thereafter,
Cousins and PREI generally would have economic interests in such
activities of 88.5% and 11.5%, respectively, subject to certain
preferences of both parties. "We are thrilled to expand our
eight-year relationship with PREI to include another innovative
venture. Cousins has been fortunate over its 48-year history to
partner with some of the country's top companies and this is
another example of how our partnerships put Cousins in a position
to create value for our shareholders," said Tom Bell, president and
CEO of Cousins. "In addition, this venture allows us to capture the
value we've created in these retail projects while maintaining
control over The Avenue brand, which has earned a reputation for
high-quality, innovative shopping environments with both retailers
and consumers." "Together with the recent increase in our unsecured
credit facility and the completion of a new unsecured construction
facility, this venture will provide funding for new value-creation
opportunities," Bell added. "We are extremely pleased to expand our
relationship with Cousins, which has a proven ability as a strong
real estate developer and operator," said Dale Taysom, managing
director of transactions for PREI. "This joint venture, among other
things, allows us to selectively provide opportunities for our
investors to participate in the high-end retail marketplace." PREI
is the real estate investment management and advisory business of
Prudential Financial, Inc. (NYSE: PRU). PREI, comprised of fund
management centers in Parsippany, N.J.; Atlanta, Ga.; and Munich,
London and Singapore, is supported by a network of local offices
throughout the world. Its operating units offer a broad range of
investment opportunities and investment management services in the
United States, Europe, Asia and Latin America. As of December 31,
2005, PREI had $20.2 billion in net assets under management. For
more information, visit www.prei.com. Cousins Properties
Incorporated, headquartered in Atlanta, has extensive experience in
the real estate industry including the development, acquisition,
financing, management and leasing of properties. The property types
that Cousins actively invests in include office, multi-family,
retail, industrial and land development projects. The Company's
portfolio consists of interests in 7.4 million square feet of
office space, 3.8 million square feet of retail space, 0.8 million
square feet of industrial space, two multi-family residential
projects, over 9,000 acres of strategically located land tracts for
sale or future development, and significant land holdings for
development of single-family residential communities. Cousins also
provides leasing and management services to third-party investors;
its client-services portfolio comprises 12.7 million square feet of
office space. Cousins is a fully integrated equity real estate
investment trust (REIT) that has been public since 1962 and trades
on the New York Stock Exchange under the symbol "CUZ." For more
information on the Company, please visit Cousins' Web site at
www.cousinsproperties.com. Certain matters discussed in this news
release are forward-looking statements within the meaning of the
federal securities laws and are subject to uncertainties and risks,
including, but not limited to statements regarding the entry into a
venture arrangement, the satisfaction of certain conditions to the
agreement, the expected closing date of such transaction and the
effect of such transaction on the company. Other risks include
general and local economic conditions, local real estate
conditions, the activity of others developing competitive projects,
the cyclical nature of the real estate industry, the financial
condition of existing tenants, interest rates, the Company's
ability to obtain favorable financing or zoning, environmental
matters, the effects of terrorism, the failure of assets under
contract for sale to ultimately close and other risks detailed from
time to time in the Company's filings with the Securities and
Exchange Commission, including the Company's Report on Form 10-K
for the year ended December 31, 2005. The words "believes,"
"expects," "anticipates," "estimates," "would" and similar
expressions are intended to identify forward-looking statements.
Although the Company believes that its plans, intentions and
expectations reflected in any forward-looking statement are
reasonable, the Company can give no assurance that these plans,
intentions or expectations will be achieved. Such forward-looking
statements are based on current expectations and speak as of the
date of such statements. The Company undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of future events, new information or otherwise.
Cousins Properties (NYSE:CUZ)
Historical Stock Chart
From Jun 2024 to Jul 2024
Cousins Properties (NYSE:CUZ)
Historical Stock Chart
From Jul 2023 to Jul 2024