News and Announcements
US Residential Fund (ASX: USR) Sells 48 Texan Properties
- Published September 04, 2017 12:00AM UTC
- Publisher Wholesale Investor
- Categories Company Updates
KEY TAKEAWAYS:
- US Residential Fund sold a total of 48 Texan properties at a premium price of US$7.93 Million compared to the property’s book value as of December 31, 2016.
- The proceeds of the sale of the Texan properties will be used by the company to fully repay its debts.
- US Residential has revalued the multifamily apartment complex at Patriot’s Pointe.
The US Residential Fund sold a total of 48 Texan properties at a premium price of US$7.93 Million compared to the property’s book value as of December 31, 2016.
The US Residential Fund plans to use the proceeds of the sale to fully repay all of its remaining debts. It also intends to evaluate appropriate investment opportunities and its capital management to improve its shareholder value.
With the completion of the sale, the single-family home portfolio of US Residential Fund will consist only of 23 properties located in Cleveland, Ohio. These properties are also up for sale.
US Residential has also revalued the multifamily apartment complex at Patriot’s Pointe. This came after it has received a US$24.5 million indicative valuation for the property, compared to the US$21.5 million acquisition price.
The company has adopted this valuation in its financial statement dated June 30, 2017. The 8.7 cents increase in its NTA to 60 cents shows an increasing occupancy rate from 82% in January, 2017 when it was acquired, to 97% by the end of July 2017.
US Residential has also noted an improvement in its revenues due to a new supply contract for cable TV and internet. It has recently renewed the lease of its onsite telecommunications tower with Crown Castle.
The company, which is publicly traded in Australia, offers its investors exposure to various multifamily real estate assets in the United States. The US Residential Fund operates through single-family home residential property segments in the US.
The company aims to provide long-term value to its shareholders through investments in the residential property market of the US. Most of the company’s established portfolio of rental houses are found in Ohio, Georgia and Texas.
Its long-term goal is to expand and diversify in the residential market of the US by using debt and equity instruments to facilitate its direct and indirect property investments. These investments are in the form of apartment complexes and single-family homes.
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