KBS Legacy Partners Stockholders to Vote on Liquidation Plan
October 18, 2017 | James Sprow | Blue Vault
In a filing with the SEC on Tuesday, October 17, KBS Legacy Partners Apartment REIT Inc. announced to stockholders that they will vote on the company's liquidation and dissolution plan at its annual meeting slated for December 19.
The Proxy stated: “The principal purpose of the Plan is to maximize stockholder value by selling our assets, paying our debts and distributing the net proceeds from liquidation to our stockholders.
The Company’s board of directors has already voted unanimously to approve all of the above-referenced proposals. Especially in light of recent improvements in market conditions and the performance of our portfolio of properties, the board of directors and the special committee of the board of directors believe that selling our assets now, repaying our debts and distributing the net proceeds to you is the best way to maximize stockholder returns.”
Under the plan, the company expects to make liquidating distributions of roughly $8.27 to $8.70 per share within 12 months after shareholder approval. On May 1, 2017, the REIT paid a special distribution of $1.00 per share to stockholders in connection with the sale of Wesley Village, which is not included in the estimated range of liquidating distributions.
On September 29, the REIT sold Legacy Crescent Park in Greer, South Carolina, a 240-unit apartment property, for $24.1 million. The property was acquired in 2012 for $21.2 million. On September 12 the REIT sold Watertower Apartments in Eden Prairie, Minnesota, a 228-unit apartment property for $41.8 million. The property was acquired in 2013 for $39.0 million.
The Company was formed in 2009 and through the completion of its public offerings in 2013 it raised $179.2 million in gross offering proceeds. It raised an additional $15.9 million in a follow-on offering.
Stockholders will also consider at the meeting proposed changes to the company's charter, the election of five directors, ratification of Ernst & Young LLP as the REIT’s independent auditor for fiscal 2017, and a proposal that would permit adjournment of the meeting to solicit additional proxies to vote in favor of any proposal that has not received sufficient votes to be approved at the annual meeting.
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