MEMPHIS, Tenn., June 6, 2007 (PRIME NEWSWIRE) -- Education Realty Trust, Inc. (NYSE:EDR) today announced it has completed the previously announced sale of The Village on Tharpe, a 1,554-bed collegiate community near Florida State University in Tallahassee, Florida, to a Florida investor for $50 million.
Education Realty Trust plans to use net proceeds from the sale to reduce its outstanding corporate debt.
"Our sale of The Village on Tharpe is a prudent strategic move at this time when there is significant investor interest in collegiate communities. The sale of this unencumbered, non-core asset, at an attractive 6.0 percent cap rate, enables us to redeploy our capital in an accretive manner," said Paul O. Bower, Education Realty Trust chairman, president and chief executive officer.
"We continue to own and operate two other collegiate communities, The Commons and The Players Club, with 1,068 beds in the vibrant Tallahassee market," Bower said. "In addition, our accretive use of the proceeds to pay off high-cost debt will enhance the company's capital structure and foster greater shareholder value."
The Village on Tharpe was built in 1995. It has 486 units in 37 buildings. Education Realty Trust acquired The Village on Tharpe in January 2005 as part of its formation transaction, its initial public offering of shares and its simultaneous acquisition of a portfolio of communities.
The buyer is Collier Enterprises of Gainesville, Florida. The transaction closed on June 5, 2007.
About Education Realty Trust
Education Realty Trust, Inc. (NYSE:EDR) is a self-administered, self-managed real estate investment trust that owns, develops and manages high-quality student housing communities throughout the U. S. Led by a team with more than 190 years of shared industry experience, EDR is one of America's largest owners and operators of collegiate student housing. Its portfolio includes 40,231 beds at 67 communities in 21 states. For more information, please visit the company's Web site at www.educationrealty.com.
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