CCG Elects Not to Exercise Purchase Option for Copper Beech
August 19 2014 - 8:30AM
Business Wire
Campus Crest Communities, Inc. (NYSE: CCG), today announced that
it has elected not to exercise the first purchase option to acquire
additional interests in the entities comprising the 37 property
Copper Beech portfolio (“Copper Beech”) and will revert to a 48%
economic interest in the portfolio.
“Though both parties worked diligently during negotiations, we
were unable to produce a successful resolution prior to our option
expiration,” said Ted W. Rollins, the Company’s Chief Executive
Officer. “Our goal throughout was to structure a comprehensive
conclusion that would be received well by our investors and
reflective of current market dynamics. Dr. McWhirter remains our
key partner and we will continue to work closely together given our
economic interest in Copper Beech."
“As per the terms of the amended purchase and sale agreement,
effective today we will hold a 48% economic interest in the 37
property portfolio. Separately, we maintain our 67% economic
interest in the Copper Beech asset located in Ames, Iowa,” added
Donnie Bobbitt, the Company’s Chief Financial Officer, “Our
earnings guidance released on July 31, 2014, which already assumed
a 48% economic interest in Copper Beech, remains unchanged at this
time.”
“Our decision whether to make an investment in the 52% remaining
interest of Copper Beech was made separate from our prior purchase
of the initial 48%,” remarked Aaron Halfacre, EVP of Capital
Markets, “We believe we identified economic terms that investors
would have found both thoughtful and disciplined. We recognize that
a non-controlling interest is not a strategic long-term investment
and we have begun exploring strategic alternatives. In the interim,
we continue to be focused on our existing operations and a
proactive plan for balance sheet management.”
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading developer, builder,
owner and manager of high-quality student housing properties
located close to college campuses in targeted markets. The Company
has ownership interests in 80 student housing properties and over
43,000 beds across North America, of which 70 are operating and 10
are development or redevelopment properties. The Company is an
equity REIT that differentiates itself through its vertical
integration and consistent branding across the portfolio through
three unique brands targeting different segments of the college
student population. Additional information can be found on the
Company's website at http://www.campuscrest.com/.
Forward-Looking Statements
This press release, together with other statements and
information publicly disseminated by the Company, contains certain
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends
such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements contained in the Private
Securities Litigation Reform Act of 1995 and includes this
statement for purposes of complying with these safe harbor
provisions. Forward-looking statements relate to expectations,
beliefs, projections, future plans and strategies, anticipated
events or trends and similar expressions concerning matters that
are not historical facts. In some cases, you can identify
forward-looking statements by the use of forward-looking
terminology such as “may,” “will,” “should,” “expects,” “intends,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts” or
“potential” or the negative of these words and phrases or similar
words or phrases which are predictions of or indicate future events
or trends and which do not relate solely to historical matters.
Forward-looking statements in this press release include, among
others, the performance of properties in occupancy and yield
targets, outlook and guidance for full-year 2014 FFOA and the
related underlying assumptions, growth and development
opportunities, leasing activities, financing strategies, and
development and construction projects. You should not rely on
forward-looking statements since they involve known and unknown
risks, uncertainties, assumptions and contingencies, many of which
are beyond the Company’s control that may cause actual results to
differ significantly from those expressed in any forward-looking
statement. All forward-looking statements reflect the Company’s
good faith beliefs, assumptions and expectations, but they are not
guarantees of future performance. Furthermore, except as otherwise
required by federal securities laws, the Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
new information, data or methods, future events or other changes.
For a further discussion of these and other factors that could
cause the Company’s future results to differ materially from any
forward-looking statements, see the risk factors discussed in the
Company’s most recent Annual Report on Form 10-K, as updated in the
Company’s Quarterly Reports on Form 10-Q.
Campus Crest Communities, Inc.Investor Contact:Aaron S.
Halfacre, CFAEVP, Capital Markets980-208-1044
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