Campus Acquisitions properties to join ACC’s best in class portfolio
Company Website:
http://www.studenthousing.com/
AUSTIN, Texas -- (Business Wire)
American Campus Communities, Inc. (NYSE:ACC), the largest owner, manager
and developer of high-quality student housing properties in the U.S.,
today announced that it had substantially completed its due diligence
investigation relating to the acquisition of 15 student housing
properties with 6,579 beds, including two properties and an additional
phase at an existing property currently under development, pursuant to a
merger agreement with affiliates of Campus Acquisitions, LLC for $627.0
million. The acquisition consideration consists of the assumption of
approximately $231.6 million of outstanding mortgage debt, the issuance
of between $15 million and $50 million in the form of units of common
limited partnership interest in ACC's operating partnership, and between
$345.4 million and $380.4 million in cash, with the final allocation
between the unit and cash consideration to be determined by Campus
Acquisitions prior to closing.
The transaction is expected to close in the third quarter of 2012 and is
subject to certain closing conditions, including obtaining various
lender consents. The merger agreement contains provisions pursuant to
which Campus Acquisitions can defer the closings of the acquisition of
any of the development properties to a date not later than October 15,
2013 if the closing conditions relating to such properties are not
satisfied by November 15, 2012. Completion of the transaction is not
subject to financing and does not require approval by ACC stockholders.
American Campus intends to fund the cash portion of the purchase price
with available cash, borrowings under its revolving credit facility, a
bridge loan facility and/or the sale of debt or equity securities.
Bill Bayless, CEO of American Campus, commented, “We are very pleased to
be adding 15 properties to the ACC portfolio that meet our investment
criteria of differentiated communities close to campus in submarkets
with barriers to entry. This acquisition should provide us a significant
opportunity for meaningful accretion in asset value, operational upside,
efficiencies with 11 of the assets located in our existing markets, plus
new business prospects with the entry into four new tier one collegiate
markets. We believe the highly fragmented student housing industry is
ripe for consolidation and we are well positioned to execute on
strategic opportunities.”
American Campus believes that these assets represent some of the best
product in their respective markets with a combined average distance to
campus of 0.23 miles. The four tier one markets that will be new to
American Campus are Baylor University, University of Southern
California, Iowa State University, and Purdue University. In addition to
implementing the company’s proprietary operating platform across the
portfolio, the company anticipates investing $13.7 million in capital
improvements to drive future rental rate and revenue growth. The
projected year-one cap rate is 5.9 percent nominal (inclusive of upfront
capital improvements) and 5.6 percent economic (inclusive of the assumed
$200 per bed capital reserves, upfront capital improvements, $2.0
million in loan assumption costs, and $4.3 million in transaction
expenses).
This release does not constitute an offer of any securities for sale.
About American Campus Communities
American Campus Communities, Inc. is the largest developer, owner and
manager of high-quality student housing communities in the United
States. The company is a fully integrated, self-managed and
self-administered equity real estate investment trust (REIT) with
expertise in the design, finance, development, construction management,
and operational management of student housing properties. American
Campus Communities owns 124 student housing properties containing
approximately 76,100 beds. Including its owned and third-party managed
properties, ACC's total managed portfolio consists of 152 properties
with approximately 99,500 beds. Visit americancampus.com
or studenthousing.com.
Forward-Looking Statements
In addition to historical information, this press release contains
forward-looking statements under the federal securities law. These
statements are based on current expectations, estimates and projections
about the industry and markets in which American Campus operates,
management's beliefs, and assumptions made by management.
Forward-looking statements are not guarantees of future performance and
involve certain risks and uncertainties, which are difficult to predict.
Our actual results could differ materially from those anticipated in
these forward-looking statements as a result of various factors,
including risks and uncertainties related to the proposed transactions
(including but not limited to (i) the occurrence of any effect, event,
development or change that could give rise to the termination of the
merger agreement, (ii) the inability to complete the proposed
transactions, (iii) the failure of any party to satisfy the conditions
to the closing of the transactions and (iv) the failure of ACC to obtain
the necessary lender consents). These forward-looking statements are
made as of the date of this news release, and we undertake no obligation
to update publicly or revise any forward-looking statement, whether as a
result of new information, future developments or otherwise.
Contacts:
American Campus Communities, Inc.
Gina Cowart, 512-732-1000
Investor
Relations
Source: American Campus Communities, Inc.
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