CentraCore Properties Trust Announces Acquistion Of the Mesa Verde Correctional Facility, and Initiates Lease Relationship With
January 05 2006 - 5:26PM
PR Newswire (US)
PALM BEACH GARDENS, Fla., Jan. 5 /PRNewswire-FirstCall/ --
CentraCore Properties Trust (NYSE:CPV), formerly Correctional
Properties Trust, a real estate investment trust, announced it
acquired the Mesa Verde Correctional Facility (the "Facility") for
$16,300,000, plus transaction costs, on January 5, 2006. The
Facility is a 400-bed, minimum-security correctional facility
located in Bakersfield, Calif., and was acquired from Correctional
Institution, LLC, an unrelated party. CentraCore Properties Trust
("CPT") drew $16,300,000 from its existing credit facility to
complete the acquisition. Simultaneous with the acquisition, CPT
leased the Facility to Cornell Companies, Inc. Cornell Companies,
Inc., ("Cornell") and CPT executed a triple-net lease expiring July
31, 2015, with a straight-line lease rate of approximately 10.48
percent during the initial four and one-half years of the lease,
and a straight-line lease rate of approximately 12.04 percent for
the following five years of the lease term. The lease includes a
provision under which the lease payment will be increased by up to
$50,000 annually during the initial term of the lease if the
population housed in the Facility is increased. Cornell will
operate the Facility on behalf of the California Department of
Corrections and Rehabilitation ("CDCR") housing adult, male
inmates. Cornell has the one-time right to terminate the lease
effective July 31, 2010, without cost, if CDCR elects not to renew
the operating contract beyond the initial period. Charles R. Jones,
president and chief executive officer of CPT, said, "This is a
significant event for our Company for several reasons. In this
three- party transaction, we acquired the existing Facility and
simultaneously leased it to Cornell, with each of the three parties
involved being unrelated. We are very pleased to now own the Mesa
Verde Correctional Facility, which is in an excellent location.
Most importantly, we have now initiated a new business relationship
with Cornell, with the desire to complete additional transactions."
CPT, based in Palm Beach Gardens, Fla., was formed in February
1998, to capitalize on the growing trend toward privatization in
the corrections industry. CPT has expanded its scope to include
essential real estate projects outside the corrections sector,
including mental health and higher education facilities. CPT is
dedicated to ownership of properties under long- term, triple-net
leases, which minimizes occupancy risk and development risk. CPT
currently owns 13 correctional facilities in nine states, all of
which are leased, with an aggregate completed design capacity of
7,556 beds. This press release contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 regarding future events and future performance of the
Company that involve risks and uncertainties that could materially
affect actual results. Such forward- looking statements are made
pursuant to the "safe harbor" provisions of the Private Securities
Litigation Reform Act of 1995 and are qualified in their entirety
by cautionary statements and risk factors disclosure contained in
certain of the Company's Securities and Exchange Commission
filings. For a description of certain factors that could cause
actual results to vary from current expectations and
forward-looking statements contained in this press release, refer
to documents that the Company files from time to time with the
Securities and Exchange Commission. Such filings include the
Company's Form 10-K for the fiscal year ended December 31, 2004 and
subsequent periodic reports. The Company assumes no obligation to
update or supplement forward- looking statements that become untrue
because of subsequent events. Contact: CentraCore Properties Trust
Shareholder Services (561) 630-6336, or access Company information
at http://www.centracorepropertiestrust.com/ DATASOURCE: CentraCore
Properties Trust CONTACT: CentraCore Properties Trust Shareholder
Services, +1-561-630-6336 Web site:
http://www.centracorepropertiestrust.com/
Copyright
Centracore (NYSE:CPV)
Historical Stock Chart
From May 2024 to May 2024
Centracore (NYSE:CPV)
Historical Stock Chart
From May 2023 to May 2024