Transcontinental Realty Investors, Inc. and Subsidiary Southern Properties Capital Enter Joint Venture with Macquarie
December 10 2018 - 10:00AM
Business Wire
Southern Properties Capital (SPC), a subsidiary of Dallas-based
real estate investment company Transcontinental Realty
Investors, Inc. (NYSE: TCI), is pleased to announce a
joint venture agreement with a wholly owned subsidiary of
Macquarie Group Limited (ASX: MQG).
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the full release here:
https://www.businesswire.com/news/home/20181210005168/en/
Victory Abode Apartments asset Terra Lago
in Rowlett, Texas (Photo: Business Wire)
The joint venture, Victory Abode Apartments d/b/a Abode
Properties Services, currently holds 10,133 units across 11 states
with 3 assets currently under construction, formed with TCI and
Southern Properties Capital contributing the portfolio of more than
50 multifamily assets together with a substantial equity investment
by Macquarie.
The joint venture’s primary focus is to create a business
platform that will allow dramatic expansion in the multi-family
arena. The intent is to increase the overall size of the portfolio
over the next several years, through strategic buildout of its
robust development pipeline alongside opportunistic acquisitions.
The company remains highly focused in its core Southeast and
Southwest US geographic areas.
Victory Abode Apartments (VAA) is one of the largest
multi-family operating companies in the country. VAA is immediately
poised to address existing and future demand for quality
multifamily residential housing through acquisition and development
of sustainable Class A multifamily housing in focused secondary and
tertiary markets. VAA’s strong equity position is balanced through
the use of fixed-rate, long-term HUD mortgage debt, commercial
mortgages, and the use of various conventional construction
lenders. The company will be principally operated by a dedicated
and highly professional management team with decades of industry
experience, with strategic support from the venture partner.
“This transaction falls right in line with our strategic
vision,” stated Daniel Moos, CEO and President of Transcontinental
Realty Investors/Southern Properties Capital, and CEO of Victory
Abode Apartments. “This new collaboration with Macquarie, in
addition to our Series A and B Bond Raisings on the Tel Aviv Stock
Exchange, creates additional financial strength to an already
thriving organization.”
“We are excited to partner with TCI / Southern Properties on the
acquisition of this portfolio of predominantly workforce housing,
with opportunities for expansion in attractive, pro-business
markets,” said Jackie Hamilton, Senior Managing Director at
Macquarie Principal Finance.
About Southern Properties Capital
Southern Properties Capital operates primarily in Texas and
specializes in Class A multifamily assets in emerging markets
throughout the Southern United States, corresponding with both
sustainable and viable economic growth activity. The issuing entity
is backed by over 3,000 multi-family units (out of a total of
approximately 8,000 owned and operated by TCI), as well as over 1.5
million square feet office buildings in Texas. The company has
already used funds to acquire additional multi-family assets within
its strategic footprint, and expects significant expansion by
continuing to utilize the Israeli bond platform.
About Transcontinental Realty Investors
Transcontinental Realty Investors maintains a strong emphasis on
creating greater shareholder value through acquisition, financing,
operation, development, and sale of real estate across every
geographic region in the United States. A New York Stock Exchange
company, Transcontinental is traded under the symbol "TCI".
Transcontinental produces revenue through the ownership and
professional management of income producing apartments and office
buildings that are "undervalued" or "underperforming" at the time
of acquisition. Value is added under Transcontinental ownership,
and the properties are repositioned into higher classifications
through physical improvements and improved management.
Transcontinental has dramatically expanded its development
capabilities associated with luxury apartment homes through its
wholly owned subsidiary Abode Properties, principally on land it
owns or acquires.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking,
financial, advisory, investment and funds management services.
Macquarie’s main business focus is making returns by providing a
diversified range of services to clients. Macquarie acts on behalf
of institutional, corporate and retail clients and counterparties
around the world. Founded in 1969, Macquarie operates in more than
70 office locations in 25 countries. Macquarie employs
approximately 14,400 people and has assets under management of more
than $381.8 billion (as of March 31, 2018).
Part of Macquarie’s Corporate and Asset Finance business,
Macquarie Principal Finance provides flexible primary financing and
secondary market investing solutions for corporate and commercial
real estate clients. Recognizing that every client is different,
the expertise provided by Macquarie Principal Finance goes beyond
traditional financing to adapt solutions to meet individual client
needs. With offices in New York, Chicago, San Francisco, London and
Sydney, Macquarie Principal Finance has more than 80 experienced
financing and investing professionals globally. For more
information visit www.macquarie.com/principalfinance.
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version on businesswire.com: https://www.businesswire.com/news/home/20181210005168/en/
Chris Childress, Pillar Income Asset Management469.522.4275 /
press@pillarincome.com
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