EastGroup Properties Acquires Las Vegas Property for $11.1 Million
Jackson, MS – June 02, 2009 – (RealEstateRama) — EastGroup Properties (NYSE-EGP) today announced the acquisition of the Arville Distribution Center in Las Vegas, Nevada for a purchase price of $11,050,000. Arville, which was constructed in 1997, is a two building, business distribution complex containing 142,000 square feet and is located in the close-in southwest submarket of the city. It is 77% leased to eight customers and is projected to generate an annualized 8.2% yield at its current occupancy.
David H. Hoster II, President and CEO, stated, “The acquisition of Arville represents our entry into Las Vegas, a market in which we have been interested for a number of years. This multi-tenant complex fits our criteria of being on an in-fill site in a supply constrained submarket. We hope to grow our ownership in Las Vegas to one million square feet over the next 12 to 24 months. This purchase was funded by our continuous equity program which to-date has sold approximately 519,000 shares with net proceeds to EastGroup of approximately $17.4 million.”
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona and California. The Company’s goal is to maximize shareholder value by being the leading provider in its markets of functional, flexible, and quality business distribution space for location sensitive customers primarily in the 5,000 to 50,000 square foot range. The Company’s strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup’s portfolio currently includes 27 million square feet.
Certain statements in this release are forward-looking and as such are based upon the Company’s current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including but not limited to the following risks and uncertainties: changes in the real estate industry and in performance of the financial markets; the demand for and market acceptance of the Company’s properties for rental purposes; the amount and growth of the Company’s expenses; tenant financial difficulties; and general economic conditions, including interest rates, as well as economic conditions in those areas where the Company owns properties, the risks associated with the development of real property, and other risks and uncertainties detailed from time to time in the Company’s SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company’s results could differ materially from those expressed in the forward-looking statements.
Contact:
David H. Hoster II, President and Chief Executive Officer
N. Keith McKey, Chief Financial Officer
(601) 354-3555
