NEWTOWN SQUARE, Pa., April 20 /PRNewswire-FirstCall/ -- GMH Communities Trust today announced that its student housing division, College Park Communities, has acquired College Suites Stadium, a Class A, purpose-built student housing property serving the University of South Carolina in Columbia, South Carolina. The 264-unit/924-bed community was acquired for a purchase price of approximately $36.85 million, including the assumption of approximately $28.0 million in existing 10-year, fixed-rate mortgage debt of 5.57% on the property.
Miles H. Orth, Executive Vice President of the Company's student housing division, commented, "This acquisition provides an excellent opportunity to leverage operations and provide economies of scale in a growing market with proven market dynamics. I am also pleased to report that we have realized strong pre-leasing within our student housing portfolio for the 2006-2007 academic year. As of April 18, 2006 we were 54.4% pre-leased when compared to 44.8% as of this time last year."
College Suites Stadium
The property is directly adjacent to an existing owned asset, University Oaks, which was purchased by the Company in November 2004. College Suites Stadium, built in 2004, includes 11 three-story apartment buildings located on more than 29 acres of landscaped grounds. The property offers a variety of student-oriented amenities, including a clubhouse, computer lounge, a resort-style swimming pool, a sand volleyball court, basketball court, hi-tech electronic game room, tanning booth, putting green and fitness center.
The property is currently 99% leased and is 95% pre-leased for the 2006-2007 academic year. College Suites Stadium is the seventh community purchased by the Company in 2006, for an aggregate year-to-date purchase price of approximately $119.4 million. The College Suites Stadium acquisition increases the number of student housing assets owned by the Company to 61 properties, containing an aggregate of 11,492 units/37,029 beds.
College Park Management, the student housing management division of GMH Communities Trust that operates and manages on-and off-campus student housing communities throughout the country, will manage the property.
GMH Communities Trust (http://www.gmhcommunities.com/) is a publicly-traded Maryland real estate investment trust (REIT). We are a self-advised, self-managed, specialty housing company focused on providing housing to college and university students residing off-campus and to members of the U.S. military and their families residing on or near bases throughout the United States. GMH Communities also provides property management services to third-party owners of student housing properties, including colleges, universities, and other private owners. The Company, based in Newtown Square, PA, employs more than 1,650 people throughout the United States.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release that express the current beliefs and expectations of our management are "forward-looking statements," including statements regarding the anticipated placement of mortgage indebtedness on the property within the next several months. These forward-looking statements are subject to risks and uncertainties, including the Company's ability to successfully negotiate such financing on terms acceptable to the Company, or to complete the financing within the expected timeframe or at all, as well as the risk factors discussed in the Company's periodic reports as filed with the Securities and Exchange Commission. These risks and uncertainties could cause our future results, performance or achievements to differ significantly from the results, performance or achievements expressed or otherwise implied by such forward-looking statements. Forward-looking statements speak only as of the date on which they are made, and we undertake no obligation to update publicly or revise any of the forward-looking statements.
