BSR Seeking to Raise $500M, Sold Nine Properties For $119M

BSR Seeking to Raise $500M, Sold Nine Properties For $119M
John Bailey, CEO of BSR, at the company’s celebratory entry to the Toronto Stock Exchange last year in the wake of the real estate investment trust’s $135 million initial public offering.

BSR Real Estate Investment Trust of Little Rock is looking to raise up to $500 million over a 25-month period through a securities sale and has sold nine properties, comprising 1,423 apartment units, for a total of $119.2 million.

Net proceeds from the sale of securities may be used for potential future acquisitions, capital expenditures, to repay indebtedness and for general working capital purposes, the firm said Tuesday.

The REIT also announced Tuesday that is has sold the following:

  • Dove Creek Apartments in Baton Rouge, Louisiana; 

  • Longridge Apartments, also in Baton Rouge; 

  • Summer Pointe Apartments in Shreveport, Louisiana;

  • 93 Twenty Apartments;

  • Ridge Park Apartments built;

  • Inverness Apartments; 

  • Charleston Crossing Apartments, all in Tulsa;

  • Countryside Village Apartments in Moore, Oklahoma; and 

  • Ridgewood Apartments in Hot Springs.

"The transformation of our portfolio continues as we rotate out of secondary markets and into our target markets on a tax deferred basis," CEO John Bailey said in a news release. "These dispositions enable us to both crystallize the benefits of upgrades previously performed at these properties and to acquire more modern properties, clustered in targeted primary markets, with above average population growth and a clear potential for higher rent using the BSR platform."

Of the $119.2 million in cash proceeds generated by the sales, $65.6 million was used to retire related mortgage financing and $48.5 million was used to reduce the balance outstanding under the REIT's credit facility.

Following the closing of these sales, BSR's liquidity position, including cash on hand and availability of its lines of credit, is about $105.5 million, the company said.

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