WASHINGTON (dpa-AFX) - Camden Property Trust (CPT) announced that it has exercised its option to purchase the 80% interest not currently owned by the Company in 12 joint ventures. The exercise of such option creates a binding obligation for Camden to purchase, and for the holders of such interests to sell, such joint venture interests. Camden intends to close such acquisition prior to January 31, 2012.
The acquisition of such interests will result in Camden wholly-owning 12 apartment communities containing 4,034 apartment homes located in Dallas, Houston, Las Vegas, Phoenix and Southern California. The aggregate consideration for the interests which Camden will acquire is about $99.5 million in cash.
Following such acquisition, but not later than April 1, 2012, Camden said that it will also repay the indebtedness which is secured by such apartment communities in the approximate principal amount of $272.6 million.
In a separate press release, Camden Property Trust announced that it is offering 5.75 million common shares in an underwritten public offering. Camden intends to use the net proceeds to fund the acquisition of the 80% interest not currently owned by Camden in 12 related joint ventures and the repayment of the mortgage debt secured by properties owned by these joint ventures.
Camden has also granted the underwriters an option to purchase an additional 862,500 common shares.
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© 2012 AFX News
