Boston, MA 09/09/2014 (wallstreetpr) – According to reports, Highwoods Properties Inc (NYSE:HIW) has decided to sell non-core buildings worth $28.2 million. HIW has sold total 14 buildings covering total area of 379,000 square feet in Greensboro area. Out of these 14 buildings, six were office properties while other eight were industrial/flex properties. All of these buildings are single story. As per the reports, 92.5% buildings are already leased. The management expected to generate around $2.7 million in GAAP net operating income and $2.0 million in cash for the entire 2014 year.
What’s the expected output of this transaction:
As per the information given by the company, HIW will generate around $4.7 million from this sale transaction in 3Q2014. According to Ed Fritsch, Chief Executive Officer and President of HIW, “Greensboro assets of HIW are performing well, but still we want to take advantage of strong capital markets.” Highwoods Properties Inc (NYSE:HIW) has got a strong portfolio; hence, it can afford to sell a few assets and use the proceedings for other transactions.
After the execution of this sale, HIW owns total 27 industrial properties and 17 offices which are spread across 3.3 million square feet in Greensboro. If all the properties sold by the company in Greensboro area are compared with the overall properties located in this area, then one can easily notice their effectiveness. Total occupancy of these buildings is 92.0%. This rate is 630 basis point higher than the total number of vacancies located in that area.
When it comes to the industrial assets of HIW, the total occupancy is 97.6%, which is 1160 basis points higher than the local market as a whole. As per the information provided by Highwoods Properties Inc (NYSE:HIW), the non-core buildings sold by the company in the current year are worth $158.8 million. Market experts think that Highwoods Properties Inc (NYSE:HIW) may sell few more buildings in the coming months to generate extra funds for various operations, although no confirmation has been given yet by management.
