Jun 18, 2015, 09:12 ET
CHARLOTTE, N.C., June 18, 2015 /PRNewswire/ -- Campus Crest Communities, Inc. (NYSE: CCG) (the "Company" or "Campus Crest"), an owner and manager of high-quality student housing properties, today announced the recent signing of several transaction agreements to further reduce the Company's joint venture exposure and updates pertaining to the selection of a new auditor.
Joint Venture Reduction
Campus Crest has entered into a series of agreements as part of the Company's previously stated commitment to reduce its exposure to joint ventures. Should all of these transactions close as planned during the third quarter, the Company's joint venture exposure will be reduced to just six assets, compared to 50 assets last year in November when the Company announced its strategic repositioning goal.
The agreements currently include:
- The sale of the Company's entire ownership interest in the two evo Montreal properties to its existing joint venture partner in the Canadian venture. As part of the transaction, the existing project loan will be refinanced, releasing Campus Crest from all guaranty and indemnity obligations associated with the joint venture.
- The material reduction in the number of assets held in joint venture ownership with Harrison Street Real Estate Capital through the acquisition and disposition of a select number of assets by each party. Upon closing, the Company will increase its number of wholly owned properties.
- The acquisition of the remaining minority interest in the Copper Beech assets Klondike-Purdue and Northbrook Greens-State College.
After a comprehensive review, the audit committee (the "Audit Committee") of the Board has concluded the selection process to identify a new accounting firm to serve as the Company's independent registered public accounting firm beginning with our 2Q15 financial reporting cycle. Upon finalization of the engagement letter, the Company will publicly announce the new accounting firm, a leading audit and tax firm with a top ten national practice. As previously noted in the Form 8-K filed on April 28, 2015, KPMG LLP will remain in service until it completes the review of the Company's condensed consolidated financial statements for the quarterly reporting period ended March 31, 2015 and the filing of the related Quarterly Report on Form 10-Q, which is currently anticipated for mid-July.
"We are pleased to announce that our Audit Committee has completed its thorough selection process for a new auditor," stated David Coles, Interim Chief Executive Officer. "We have been working diligently on the Copper Beech financial consolidation for our 1Q15 10-Q report and fully expect to release financial results for the quarter ended March 31 by mid-July. Accompanying our release of financial results we also anticipate providing a substantive update on our nearly concluded strategic review process."
"Due diligence has been robust and we are pleased by the notable interest shown by a number of qualified interested parties," added Aaron Halfacre, President and Chief Investment Officer who has worked closely with Moelis & Company since the strategic review process began. "Further, the reduction in our joint venture exposure materially simplifies our balance sheet and is a critical element of our commitment to maximize shareholder value."
The Company noted that there can be no assurance that the strategic process will result in the Company pursuing a particular transaction or completing any such transaction. The Company also noted that the joint venture transactions are subject to customary closing conditions and approvals, including in the case of the Montreal disposition the obtaining of financing by the purchaser, and there is no assurance that the joint venture transactions will be successfully concluded.
About Campus Crest Communities, Inc.
Campus Crest Communities, Inc. is a leading owner and manager of high-quality student housing properties located close to college campuses in targeted markets. It has ownership interests in 82 student housing properties with over 44,000 beds across North America. Additional information can be found on the Company's website at http://www.campuscrest.com.
This press release, together with other statements and information publicly disseminated by the Company, contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, you can identify forward-looking statements by the use of forward-looking terminology such as "may," "will," "should," "expects," "intends," "plans," "anticipates," "believes," "estimates," "predicts" or "potential" or the negative of these words and phrases or similar words or phrases which are predictions of or indicate future events or trends and which do not relate solely to historical matters. You should not rely on forward-looking statements since they involve known and unknown risks, uncertainties, assumptions and contingencies, many of which are beyond the Company's control, that may cause actual results to differ significantly from those expressed in any forward-looking statement. All forward-looking statements reflect the Company's good faith beliefs, assumptions and expectations, but they are not guarantees of future performance. Furthermore, except as otherwise required by federal securities laws, the Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes. For a further discussion of these and other factors that could cause the Company's future results to differ materially from any forward-looking statements, see the risk factors discussed in the Company's most recent Annual Report on Form 10-K, as updated in the Company's Quarterly Reports on Form 10-Q.
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SOURCE Campus Crest Communities, Inc.
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