ATLANTA, Sept. 24, 2020 /PRNewswire/ -- Preferred
Apartment Communities, Inc. (NYSE: APTS) (the "Company") announced
today that it has entered into a Purchase and Sale Agreement to
sell its student housing portfolio (the "Portfolio") to TPG Real
Estate Partners ("TREP") for $478.7
million. The transaction is expected to close in the fourth
quarter of 2020 and is subject to customary closing conditions. The
Portfolio was marketed for sale by CBRE.
The Portfolio includes eight, high-quality student housing
communities located in Arizona,
Florida, Georgia, North
Carolina, and Texas.
The communities include more than 6,000
beds with a wide range of indoor and outdoor
amenities. The communities to be sold include:
- NxNW, a 679-bed student housing community located in
Tallahassee, Florida
- Knightshade, an 894-bed student housing community located in
Orlando, Florida
- The Tradition, an 808-bed student housing community located in
College Station, Texas
- The Bloc, a 556-bed student housing community located in
Lubbock, Texas
- Ursa, an 840-bed student housing community located in
Waco, Texas
- SoL, a 639-bed student housing community located in
Tempe, Arizona
- Stadium Village, a 792-bed student housing community located in
Kennesaw, Georgia near
Atlanta, Georgia
- Rush, an 887-bed student housing community located in
Charlotte, North Carolina
"We look forward to closing the sale of our student housing
portfolio to TPG Real Estate in the coming months," said
Joel Murphy, Preferred Apartment
Communities' President and Chief Executive Officer. "This is
consistent with our previously stated objectives to exit the
student housing space, simplify our focus to our core Sunbelt
multifamily business, and improve our balance sheet. TPG Real
Estate has demonstrated their commitment to the transaction and
their sector experience throughout the process, and both groups
worked well together during the due diligence phase."
"This transaction represents a scaled entry for TPG Real Estate
into the U.S. student housing sector and an extension of our
student housing initiatives in Europe. We believe the assets in this
portfolio will benefit from their adjacency to high-quality
academic institutions that are well positioned to weather the
challenges resulting from the Covid-19 pandemic," said Ty Newell, Principal at TREP. "In spite of these
near-term challenges, these student housing communities are poised
to experience a combination of strong regional demographic
fundamentals and favorable supply dynamics that should continue to
support performance. Preferred Apartment Communities has continued
to operate and lease the Portfolio in a first-rate manner following
the signing of the purchase agreement. We look forward to
leveraging TREP's expertise in building and scaling high-quality
real estate platforms, as well as the operating capabilities of our
partners at Cardinal Group, to generate additional growth and value
across the portfolio."
More information can be found in a current report on Form 8-K
that the Company filed today with the Securities and Exchange
Commission.
About Preferred Apartment Communities, Inc.
Preferred Apartment Communities, Inc. (NYSE: APTS) is a real
estate investment trust engaged primarily in the ownership and
operation of Class A multifamily properties, with select
investments in grocery anchored shopping centers, Class A office
buildings, and student housing properties. Preferred Apartment
Communities' investment objective is to generate attractive, stable
returns for stockholders by investing in income-producing
properties and acquiring or originating real estate loans. As of
June 30, 2020, the Company owned or
was invested in 125 properties in 15 states, predominantly in the
Southeast region of the United States. Learn more at
www.pacapts.com.
About TPG Real Estate
TPG Real Estate ("TPGRE") is the real estate platform of TPG, a
leading global alternative asset firm with approximately
$83 billion of assets under
management and 14 offices around the world. TPGRE includes TPG Real
Estate Partners ("TREP"), its equity investment platform, and TPG
Real Estate Finance Trust (NYSE: "TRTX"), its debt origination and
acquisition platform. TREP focuses primarily on investments in real
estate-rich companies, property portfolios, and select single
assets located in North America
and Europe. TRTX originates and
acquires senior real estate loans across a broad spectrum of asset
classes in North America. TPGRE
currently manages approximately $11.1
billion in assets across both platforms. For more
information please visit www.tpg.com.
Forward-Looking Statements
This press release may contain forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934. These
statements may be identified by the use of forward-looking
terminology such as "may", "trend", "will", "expects", "plans",
"estimates", "anticipates", "projects", "intends", "believes",
"goals", "objectives", "outlook" and similar expressions.
Because such statements include risks, uncertainties and
contingencies, actual results may differ materially from the
expectations, intentions, beliefs, plans or predictions of the
future expressed or implied by such forward-looking statements.
These risks, uncertainties and contingencies include, but are not
limited to, (a) the impact of the coronavirus (COVID-19) pandemic
on PAC's business operations and the economic conditions in the
markets in which PAC operates; (b) PAC's ability to mitigate the
impacts arising from COVID-19 and (c) those disclosed in PAC's
filings with the Securities and Exchange Commission. PAC undertakes
no obligation to update these forward-looking statements to reflect
events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events, except as may be required by
law.
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SOURCE Preferred Apartment Communities, Inc.