JACKSON, Miss., March 11, 2011 /PRNewswire/ -- EastGroup Properties, Inc. (NYSE: EGP) today announced the signing of an application for a $65 million non-recourse mortgage loan. The note has a fixed interest rate of 4.75%, a 10-year term, a 20-year amortization schedule and is secured by properties containing 1.9 million square feet. Closing of the new mortgage loan, which is expected to occur at the end of May 2011, is subject to normal and customary documentation and closing conditions. The Company plans to use the proceeds to pay down its variable rate bank borrowings. As previously reported, the Company has a mortgage loan with an interest rate of 7.92% that will mature in May 2011 with a balloon payment of $22.8 million.
EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition, and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona and California. Its strategy for growth is based on its property portfolio orientation toward premier business distribution facilities clustered near major transportation features. EastGroup's portfolio currently includes 28.1 million square feet.
Certain statements in this release are forward-looking and as such are based upon the Company's current belief as to the outcome and timing of future events. There can be no assurance that future developments affecting the Company will be those anticipated by the Company. These forward-looking statements involve risks and uncertainties (some of which are beyond the control of the Company) and are subject to change based upon various factors, including the risks and uncertainties detailed from time to time in the Company's SEC filings. Should one or more of these risks or uncertainties occur, or should underlying assumptions prove incorrect, the Company's results could differ materially from those expressed in the forward-looking statements.
EastGroup Properties, Inc. press releases are available at www.eastgroup.net.
SOURCE EastGroup Properties, Inc.