United Dominion Realty Trust announced today that it has signed a joint venture agreement with AEGON USA Realty Advisors, Inc. for the development of apartment homes on a national basis.
The joint venture is expected to develop approximately eight to ten garden style apartment communities over the next three years, with a total development cost up to $210 million. The venture will obtain bank construction financing for 70% to 80% of total costs. The venture will provide equity contributions for the balance of the costs with AEGON providing 80% of the equity and United Dominion providing 20% of the equity required.
'This development venture is very similar to the successful program that we just concluded with Credit Suisse First Boston under which our company built five apartment communities with stabilized returns in the 9.8% to 10% range. This new program has the same benefits of a national operating platform combined with United DominionÂ's development expertise and proven track record. By starting the program at this time, we should be delivering apartment homes for leasing in late 2003,' cites Mark Wallis, Sr. Executive Vice President and head of development for United Dominion.
'This venture combines experience, expertise and financial resources that tracks with our formula for success. We feel confident that we will meet the projections and satisfy every objective relating to this project and the joint venture relationship,' commented Thomas Nordstrom, Senior Vice President of the AEGON USA Realty Advisors, Inc.
Wachovia Securities acted as financial advisor and equity placement agent for United Dominion Realty Trust in this transaction.
United Dominion is one of the countryÂ's largest multifamily real estate investment trusts owning and operating apartment communities nationwide. The Company currently owns all or an interest in approximately 78,000 apartment homes and is the developer for over 200 homes under construction. United DominionÂ's common stock is traded on the New York Stock Exchange under the symbol UDR.
For more information please visit www.udrt.com.
(source: United Dominion Realty Trust)