EastGroup Acquires Two Charlotte Buildings for $22.4 Million

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Aug 24, 2011, 03:04 ET

JACKSON, Miss., Aug. 24, 2011 /PRNewswire/ -- EastGroup Properties (NYSE-EGP) today announced two acquisitions in separate transactions in Charlotte, North Carolina. Lakeview Business Center ($7,000,000) is a 127,000 square foot business distribution building located in Charlotte's north submarket. Built in 1996, this state-of-the-art facility is 100% leased to three customers and is projected to generate a first year cash yield of 7.2%.

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Ridge Creek Distribution Center II ($15,350,000) is a 300,000 square foot multi-tenant, state-of-the-art, bulk distribution building located in the southwest submarket in a park containing another EastGroup property. Constructed in 2003, Ridge Creek II is 100% leased to two customers and is projected to have a first year stabilized cash yield of 7.6%.

David H. Hoster II, President and CEO, stated, "The acquisition prices of Lakeview and Ridge Creek are both below replacement costs, and the assets are located in attractive and proven infill submarkets. They increase our Charlotte area ownership to over 2.2 million square feet which are currently 94.5% leased."

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