Eastgroup sells 1.25m shares to Citigroup

8 September 2006

EastGroup Properties is to sell 1.25 million of its shares to Citigroup Global Markets in order to repay some of its borrowings.

In a deal worth around $60 million, EastGroup has granted the underwriter a 30-day option to purchase up to 187,500 additional shares to cover over-allotments, if any.

The self-administered equity real estate investment trust-focused firm will use the cash to repay borrowings under its credit facility.

It claims its growth strategy is based on ownership of "premier distribution facilities" near major transport features and has 21.5 million square feet with an additional 1,364,000 square feet of properties under development.

Most of EastGroup's properties are in the USA's "Sunbelt" of Florida, Texas, California and Arizona.

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