CPV Cbs Corp. New Senior Notes

PALM BEACH GARDENS, Fla., Jan. 17 /PRNewswire-FirstCall/ -- CentraCore Properties Trust (NYSE:CPV), formerly Correctional Properties Trust, a real estate investment trust, announced it amended the terms of the lease agreement with The GEO Group, Inc., dated April 28, 1998, relating to its 224-bed McFarland Community Correctional Facility (the "McFarland Facility") in McFarland, California. Pursuant to the first amendment to the lease agreement (the "Amended Lease"), the lease term on the McFarland Facility was extended and modifications were made to the rental payments and lease extension options. The GEO Group, Inc. ("GEO") was awarded a new operating contract on the McFarland Facility with an initial term of five years beginning January 1, 2006, with one five-year renewal option by the California Department of Corrections and Rehabilitation ("CDCR"). The new operating contract replaces the one-year contract between GEO and CDCR, which expired December 31, 2005. As a result of the new CDCR operating contract, the original lease expiration date on the McFarland Facility of April 28, 2008, was extended to accommodate the term of the new CDRC operating contract. Per the terms of the original lease agreement, the annual cash rent on the McFarland Facility prior to amending the lease was $803,497 with an annual lease escalator at CPI, not to exceed 4 percent annually. Pursuant to the terms of the Amended Lease, effective January 1, 2006, the annual, cash-rent payments are fixed at $950,000 with no lease escalator. Charles R. Jones, president and chief executive officer of CentraCore Properties Trust, said, "It is significant that the McFarland Facility lease has been renewed well ahead of the lease expiration date. The lease was renewed early because GEO has a new operating agreement for the McFarland Facility with a term well in excess of the remaining term of the original lease. It is generally the case in the private correction sector that a correctional service operator must control the facility being operated through a lease or otherwise, for a term equal to or in excess of the operating agreement." The Amended Lease expiration date is March 31, 2016. However, GEO has a one-time right to terminate the lease agreement effective 90 days following the expiration of the initial term of the new operating contract, at no cost, if the CDCR elects not to exercise its option to extend the new operating contract beyond the expiration date of the initial term. CentraCore Properties Trust ("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 factor 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