JACKSON, Miss., Dec. 19, 2011 /PRNewswire/ -- EastGroup Properties (NYSE: EGP) today announced the acquisition of an industrial portfolio consisting of 16 buildings with 1,147,000 square feet in Tampa, Florida. After the eventual disposition of six non-core buildings, EastGroup will retain 1,078,000 square feet with a projected total investment of approximately $55,400,000 which includes estimated first year capital improvements. The core portfolio is currently 92% leased and is projected to generate an annualized 7.3% yield at a stabilized occupancy of 95%.
David H. Hoster II, President and CEO, stated, "This portfolio acquisition increases EastGroup's ownership to 3.9 million square feet in the market and makes us the largest industrial owner-operator in Tampa. These newly acquired business distribution assets complement our existing properties in Tampa's two primary infill industrial submarkets which historically have averaged higher occupancies than the overall metro Tampa industrial market. We now own over 9 million square feet in Florida."
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 over 30 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.