CHARLOTTE, N.C., June 18, 2015 /PRNewswire/ -- Campus Crest
Communities, Inc. (NYSE: CCG) (the "Company" or "Campus Crest"), an
owner and manager of high-quality student housing properties, today
announced the recent signing of several transaction agreements to
further reduce the Company's joint venture exposure and updates
pertaining to the selection of a new auditor.
Joint Venture Reduction
Campus Crest has entered into a series of agreements as part of
the Company's previously stated commitment to reduce its exposure
to joint ventures. Should all of these transactions close as
planned during the third quarter, the Company's joint venture
exposure will be reduced to just six assets, compared to 50 assets
last year in November when the Company announced its strategic
repositioning goal.
The agreements currently include:
- The sale of the Company's entire ownership interest in the two
evo Montreal properties to its
existing joint venture partner in the Canadian venture. As part of
the transaction, the existing project loan will be refinanced,
releasing Campus Crest from all guaranty and indemnity obligations
associated with the joint venture.
- The material reduction in the number of assets held in joint
venture ownership with Harrison Street Real Estate Capital through
the acquisition and disposition of a select number of assets by
each party. Upon closing, the Company will increase its number of
wholly owned properties.
- The acquisition of the remaining minority interest in the
Copper Beech assets Klondike-Purdue and Northbrook Greens-State
College.
Auditor Selection
After a comprehensive review, the audit committee (the "Audit
Committee") of the Board has concluded the selection process to
identify a new accounting firm to serve as the Company's
independent registered public accounting firm beginning with our
2Q15 financial reporting cycle. Upon finalization of the engagement
letter, the Company will publicly announce the new accounting firm,
a leading audit and tax firm with a top ten national practice. As
previously noted in the Form 8-K filed on April 28, 2015, KPMG LLP will remain in service
until it completes the review of the Company's condensed
consolidated financial statements for the quarterly reporting
period ended March 31, 2015 and the
filing of the related Quarterly Report on Form 10-Q, which is
currently anticipated for mid-July.
"We are pleased to announce that our Audit Committee has
completed its thorough selection process for a new auditor," stated
David Coles, Interim Chief Executive
Officer. "We have been working diligently on the Copper Beech
financial consolidation for our 1Q15 10-Q report and fully expect
to release financial results for the quarter ended March 31 by mid-July. Accompanying our release of
financial results we also anticipate providing a substantive update
on our nearly concluded strategic review process."
"Due diligence has been robust and we are pleased by the notable
interest shown by a number of qualified interested parties," added
Aaron Halfacre, President and Chief
Investment Officer who has worked closely with Moelis & Company
since the strategic review process began. "Further, the reduction
in our joint venture exposure materially simplifies our balance
sheet and is a critical element of our commitment to maximize
shareholder value."
The Company noted that there can be no assurance that the
strategic process will result in the Company pursuing a particular
transaction or completing any such transaction. The Company also
noted that the joint venture transactions are subject to customary
closing conditions and approvals, including in the case of the
Montreal disposition the obtaining
of financing by the purchaser, and there is no assurance that the
joint venture transactions will be successfully concluded.
About Campus Crest Communities, Inc.
Campus Crest
Communities, Inc. is a leading owner and manager of high-quality
student housing properties located close to college campuses in
targeted markets. It has ownership interests in 82 student housing
properties with over 44,000 beds across North America. 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. 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.
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SOURCE Campus Crest Communities, Inc.