Urstadt Biddle Properties Inc. Announces Completion of Sale of Five Town Plaza Shopping Center in Springfield, Massachusetts
September 25 2014 - 3:32PM
Business Wire
Urstadt Biddle Properties Inc. (NYSE:UBA and UBP), a real estate
investment trust, announced today that is has completed the sale of
its 328,000 square foot retail shopping center located in
Springfield, Massachusetts known as the “Five Town Plaza Shopping
Center”. The property was sold to an institutional real estate
company for an all cash price of $31,007,400. The sale of Five Town
Plaza will complete a tax-deferred reverse exchange, the down-leg
of which was the recently completed purchase of two retail
properties in Greenwich, Connecticut for a purchase price of $47.4
million. The company will use the proceeds of the sale to repay
existing borrowings on its unsecured revolving credit facility that
were made in connection with the purchase of the Greenwich
properties. The company estimates that it will record, for
financial reporting purposes, a gain on sale of the property of
approximately $24 million in its fiscal fourth quarter ending
October 31, 2014.
Commenting on the sale, Willing L. Biddle, UBP’s President and
Chief Executive Officer said, “Our company had owned Five Town
Plaza since the early 1970’s. The change in anchor tenants has been
a reflection of the changing retail environment over the years. The
original supermarket anchor was Mott’s ShopRite which was replaced
by A&P, and subsequently the current Big Y Supermarket. The
original discount department store anchor was W.T. Grant, which was
replaced by Caldor’s, then Spag’s, and more recently the current
Burlington Coat Factory. Our company was able to reinvest the
proceeds of the sale into two primarily retail properties located
in Greenwich, CT. One property is a CVS anchored 48,000 sf property
located on the Boston Post Road (Route 1) in the Cos Cob section of
Greenwich and the other is a 40,000 sf property anchored by a Kings
Supermarket located adjacent to the train station in the Old
Greenwich section of Greenwich. We believe that the long term
growth prospects of exceptionally well located grocery and drug
store anchored properties in Greenwich, CT will be superior to that
of a legacy property in Springfield, MA and thus we took the
opportunity to pare and upgrade our portfolio. This continues our
effort to upgrade any properties in our portfolio that we feel do
not meet our long term investment objectives, which earlier this
year included the sale of our two non-core industrial properties
and our two Queens County-New York City street retail
properties.”
Urstadt Biddle Properties Inc. is a self-administered equity
real estate investment trust which owns or has equity interests in
68 properties containing approximately 4.8 million square feet of
space. Listed on the New York Stock Exchange since 1970, it
provides investors with a means of participating in ownership of
income-producing properties. It has paid 179 consecutive quarters
of uninterrupted dividends to its shareholders since its inception
and has raised total dividends to its shareholders for the last 20
consecutive years.
Certain statements contained herein may constitute
“forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Such factors include, among other
things, risks associated with the timing of and costs associated
with property improvements, financing commitments and general
competitive factors.
Urstadt Biddle Properties, Inc.Willing Biddle,
203-863-8200President and CEOorJohn T. Hayes, 203-863-8200CFO
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