EastGroup Properties Acquires Three Dallas Buildings for $6.7 Million
Jackson, MS – August 18, 2009 – (RealEstateRama) — EastGroup Properties (NYSE-EGP) today announced the acquisition of three business distribution buildings containing 227,000 square feet in Dallas for a combined purchase price of $6,675,000. The buildings, which will be renamed Interstate Distribution Center V, VI and VII, are located in the city’s close-in northwest submarket along the Stemmons Freeway. They were constructed in 1979-81 and are presently 87% occupied by six customers. The buildings are projected to generate an annualized 9.2% yield at their current occupancy.
David H. Hoster II, President and CEO, stated, “The acquisition of Interstates V, VI and VII allows EastGroup to expand in an attractive in-fill submarket where we have a successful existing base of assets. It increases our cluster of business distribution properties there to over 800,000 square feet in ten buildings. We are continuing to look for additional acquisition opportunities in our major markets.”
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
