Whitestone REIT (WSR) is acquiring two upscale retail centers in Texas. The agreement is two separate transactions. The first center, Eldorado Plaza is located in McKinney, Texas. The second center, BLVD Place, is located in Uptown Houston, Texas. Both centers are located in affluent areas. The total cost for both centers is 205 million.
Eldorado has an option to purchase an additional 1.86 acres of land that will give Whitestone the ability to build and develop an estimated 24,000 square feet of additional leased space. BLVD Place includes an additional 1,43 acres of land that will give Whitstone the ability to develop another 24,000 square feet of space that can be leased.
In a separate press release Whitestone announced that it intends to issue an additional 8,100,000 of common shares
“Whitestone will contribute the net proceeds of the offering to its operating partnership in exchange for units of limited partnership interest in the operating partnership. The operating partnership intends to use the net proceeds from the offering initially to repay a portion of outstanding indebtedness under Whitestone’s unsecured revolving credit facility, which amounts will then become available for future borrowings, including to fund a portion of the purchase price of two pending acquisitions of properties, or for general corporate purposes.”
Source: Whitestone Press Release
The shares are down approximately 5% in after hours trading.
I am long Whitestone REIT and am considering picking up additional shares if the price drops further.
Comments or thoughts ?