JACKSON, Miss., Dec. 21, 2011 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) today announced the closing of a $50 million unsecured term loan. The note has a fixed interest rate of 3.91%, a seven-year term and interest only payments. The Company plans to use the proceeds to reduce its variable rate bank borrowings.
The Company expects its previously announced $54 million, non-recourse first mortgage loan to close during the first week in January 2012. The note will have a fixed interest rate of 4.09%, a 10-year term, a 20-year amortization schedule and will be secured by properties containing 1.4 million square feet. The Company also plans to use the proceeds to reduce its variable rate bank borrowings.During the fourth quarter, the Company has sold 457,617 shares of common stock under its continuous equity program at an average price of $43.70 per share, before expenses, with proceeds to the Company of $20,000,000. On December 19, 2011, the Company closed the acquisition of Rittiman Distribution Center 1 and 2 in San Antonio for $8,125,000. The business distribution buildings, which were built in 2000, contain 172,000 square feet and are currently 76% leased to six customers. EastGroup's investment is projected to generate a cash yield of 7.3% at a stabilized occupancy of 95%. 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, California and North Carolina. 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 the 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.
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