Armada plans to use revolver in acquisition, requests $25 million under accordion

By Wendy Van Sickle

Columbus, Ohio, Dec. 3 – Armada Hoffler Properties, Inc. plans to draw under its unsecured revolving credit facility to fund part of a real estate portfolio acquisition and requested to increase the facility by $25 million via its accordion feature, according to an 8-K filed with the Securities and Exchange Commission.

The company plans to purchase a portfolio of 11 retail properties in North Carolina, South Carolina, Indiana, Texas and Virginia for a total of $170.5 million. Six core assets in the Carolinas’ anchor tenants include Harris Teeter, PetSmart Inc., T.J. Maxx, Bed Bath & Beyond, Inc., Ross Dress for Less, Hobby Lobby and Petco.

Armada would use proceeds from the recent $30 million sale of its Oceaneering International facility and the pending $78 million sale of its Richmond Tower office building in addition to revolver borrowings to fund the purchase.

Also, the company said it is evaluating selling part of the portfolio outside of the Carolinas after the acquisition to generate $20 million to $25 million.

If the additional lender commitments requested under the revolver’s accordion are not funded, the company said it would “need to secure alternative sources of capital in order to close the acquisition of the Cavalier Portfolio, which may not be available on favorable terms, or at all.”

The acquisition is expected to close in the first quarter of 2016.

Armada is a real estate company is based in Virginia Beach, Va.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.