FOR MORE INFORMATION, CONTACT:
David H. Hoster II, President and Chief Executive Officer
N. Keith McKey, Chief Financial Officer
(601) 354-3555
Jackson, Mississippi, October 24, 2005– EastGroup Properties (NYSE-EGP) today announced the acquisition of two Houston properties in separate transactions, for a total of $6,150,000. Clay Campbell contains 118,000 square feet in two business distribution buildings and was purchased for $4,025,000. Constructed in 1982 and located in northwest Houston, it is 100% leased to six customers and is projected to generate an unleveraged cash return of 8.6% at 100% occupancy after anticipated capital improvements.
EastGroup also purchased a 33,000 square foot business distribution building located in the World Houston International Business Center for a price of $2,125,000. Renamed World Houston 18, the building constructed in 1995, is 100% leased to a single customer and is projected to generate an unleveraged cash yield of 8.5% at 100% occupancy.
David H. Hoster II, President and CEO stated, “The two Houston acquisitions complement our existing assets in submarkets where we already have ownership positions. They increase our investment in Houston to over 3.5 million square feet.”
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 a special emphasis in the states of Florida, Texas, California and Arizona. Its strategy for growth is based on its property portfolio orientation toward premier business distribution facilities clustered near major transportation features. EastGroup’s portfolio currently includes 21.4 million square feet with an additional 803,000 square feet of properties under development.
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 at www.eastgroup.net.
P.O. Box 22728, Jackson, MS 39225-2728
Telephone: 601/354-3555 Fax: 601/352-1441