EastGroup Acquires 133 Acres of Land for $10 Million in Houston

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Oct 04, 2011, 10:58 ET

JACKSON, Miss., Oct. 4, 2011 /PRNewswire/ -- EastGroup Properties (NYSE-EGP) today announced the acquisition of 133 acres of development land for the expansion of its World Houston International Business Center. In addition to the purchase price of $10,023,000, EastGroup intends to invest approximately $10,000,000 in infrastructure improvements to the site. This acquisition provides EastGroup the opportunity to add approximately 1.6 million square feet of industrial space through new development in future years.

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The World Houston International Business Center is located along Beltway 8 near the entrance to George Bush Intercontinental Airport in north Houston. EastGroup currently owns 2.3 million square feet of industrial space at World Houston which was 95% leased at September 30, and has another 138,000 square feet under development which was 80% leased at that date. EastGroup's total Houston portfolio contains 4.8 million square feet.

David H. Hoster II, President and CEO, stated, "This 133 acre land acquisition, which is adjacent to our existing World Houston International Center ownership, represents the natural expansion of EastGroup's largest and most successful development endeavor. We hope to begin construction of the first phase of infrastructure improvements and our first building on this land early next year."

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 29 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.

EastGroup Properties, Inc. press releases are available on the Company's website at www.eastgroup.net.

SOURCE EastGroup Properties