MINOT, ND -- (MARKET WIRE) -- 05/17/06 --
Investors Real Estate Trust (NASDAQ: IRETS) today
announced that it has signed an agreement to acquire an office portfolio
comprised of nine properties, consisting of 15 buildings totaling 936,320
rentable square feet, for $140.8 million (including the assumption of
existing debt on the portfolio) from subsidiaries of Omaha-based Magnum
Resources, Inc., a real estate services and investment firm founded by W.
David Scott.
The closing of IRET's portfolio acquisition is expected to occur on or
before September 1, 2006, subject to the satisfaction of certain customary
closing conditions. The completed acquisition will result in IRET owning
100 percent of the acquired properties.
The office portfolio is concentrated in Omaha, Nebraska, with four
properties consisting of 10 buildings totaling 463,885 rentable square
feet. An additional two properties totaling 183,509 rentable square feet
are located in the St. Louis, Missouri metropolitan area; two properties
totaling 198,611 rentable square feet are located in the Minneapolis-St.
Paul, Minnesota metropolitan area, and one property with 90,315 rentable
square feet is located in Leawood, Kansas. The acquisition price will be
funded with the issuance of up to approximately $60 million of limited
partnership units in IRET's operating partnership, IRET Properties.
With this transaction, IRET will increase its office portfolio from
approximately 3,796,198 rentable square feet to more than 4,732,500
rentable square feet, an increase of approximately 25%.
Thomas Wentz, Sr., IRET's President and Chief Executive Officer, commented:
"This transaction presents IRET with a unique opportunity to acquire a
high-quality office portfolio in several very attractive markets with
growing economies and strong market fundamentals." Timothy Mihalick, IRET's
Senior Vice President and Chief Operating Officer, added "These
high-quality assets will be a great addition to IRET's diversified
portfolio of properties. We are especially pleased that our association
with the selling entities will continue through their ownership of units in
our operating partnership, IRET Properties."
Kelly Walters, Senior Vice President of Magnum Resources, Inc., noted that
"Magnum Resources is committed to working with IRET to transition the
ownership and management of this portfolio as efficiently as possible. We
look forward to a mutually beneficial relationship with IRET."
IRET is a real estate investment trust (REIT) headquartered in Minot, North
Dakota, with an additional office in Minneapolis, Minnesota. Excluding the
properties discussed in this announcement, IRET currently owns a
diversified portfolio of 211 properties, consisting of 66 multi-family
residential properties with 8,648 rentable units, and 145 office, medical,
industrial and retail properties totaling approximately 8.7 million
rentable square feet, concentrated in the upper Midwest. IRET's common
shares of beneficial interest trade on the NASDAQ National Market under the
symbol IRETS. For more information, visit IRET's website at www.iret.com.
Portfolio Summary
Property/Location Approx. Rentable Square Feet
----------------- ----------------------------
Corporate Center West, Omaha, NE 141,724 in total; three buildings
Pacific Hills, Omaha, NE 142,958 in total; five buildings
Farnam Executive Center, Omaha, NE 94,832
Miracle Hills One, Omaha, NE 84,371
Woodlands Plaza IV, St. Louis, MO 60,942
Riverport, Maryland Heights, MO 122,567
Timberlands, Leawood, KS 90,315
Flagship Office Building,
Eden Prairie, MN 138,784
Gateway Corporate Center, Woodbury, MN 59,827
----- -------
Total 936,320
This release contains forward-looking statements, within the meaning of the
federal securities laws, relating to IRET's business and financial outlook.
Such statements involve known and unknown risks, uncertainties and other
factors that may cause actual results to differ materially from projected
results. Such risks, uncertainties and other factors include, but are not
limited to: the ability of the parties to the transaction described above
to satisfy the transaction's closing conditions; the extent to which IRET
will be able to obtain tenants for the space currently vacant in the
above-described property portfolio; potential fluctuations in our operating
results; the need for additional capital; the direction of interest rates
and their subsequent effect on our business; competition; our ability to
attract and retain skilled personnel; and those risks and uncertainties
discussed in filings made by us with the Securities and Exchange
Commission. IRET does not undertake a duty to update or revise any
forward-looking statements whether as a result of new information, future
events or otherwise.
Contact:
Michelle R. Saari
Website:
www.iret.comInvestors Real Estate Trust
PO Box 1988
12 South Main Street
Minot, North Dakota 58701
Phone: 701.837.4738
Fax: 701.838.8875
Email: Email Contact