Prospect Capital Expands Into Real Estate Yield Investments
NEW YORK, NY -- (Marketwire) -- 01/18/13 -- Prospect Capital Corporation (NASDAQ: PSEC) ("Prospect") announced today that Prospect has expanded its diversified yield investment business into the real estate marketplace with three new investments aggregating nearly $50 million.
With more than $4 billion of assets and committed capital across more than 100 companies, Prospect is one of the largest and most diversified companies in the business development company peer universe. Prospect's diversified yield businesses include private equity sponsor finance, non-sponsor direct lending, Prospect-sponsored recapitalizations, structured credit investments, and now real estate investments. Prospect examines all industries as part of its investment review.
Prospect closed more than $2.25 billion of originations in calendar year 2012 across more than 50 new portfolio companies, not including transactions with existing portfolio companies.
"While our initial real estate investments have been in industrial and multi-family residential properties, Prospect is interested in all types of direct and indirect real estate investments, including properties owned by private equity-owned companies," said Grier Eliasek, President and Chief Operating Officer of Prospect. "We have hundreds of millions of dollars of liquidity, are growing, and are actively screening new investment opportunities in real estate and beyond. Our focus is on recurring and stable cash flow streams that we can dividend to our shareholders."
Prospect has made its real estate investments by investing debt and equity into a newly-established, de-consolidated portfolio company called APH Property Holdings, LLC ("American Property Holdings" or "APH"), which owns a tax-efficient and private real estate investment trust.
APH recently invested $30.4 million for the acquisition of Live Oaks, a multi-family residential property located in Tampa, Florida. Live Oaks was completed in 1991 as a garden-style apartment complex with 770 residential units in 55 buildings situated on a 60-acre parcel.
In December 2012, APH invested $9.6 million to acquire Abbington Pointe, a multi-family residential property located in Marietta, Georgia. Abbington Pointe was built in 1983 as a garden-style apartment complex. The property consists of 408 residential units in 50 buildings on a 37-acre parcel.
In October 2012, APH invested $7.8 million to acquire a 110,000 square foot industrial facility located on a 5.4-acre parcel in Forest Park, Georgia. The Forest Park property is leased to a single tenant in the chicken processing industry. That tenant has occupied the property for thirteen years, with ten years remaining on the lease.
ABOUT PROSPECT CAPITAL CORPORATION
Prospect Capital Corporation (www.prospectstreet.com) is a closed-end investment company that lends to and invests in private and microcap public businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments.
We have elected to be treated as a business development company under the Investment Company Act of 1940 ("1940 Act"). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. Failure to comply with any of the laws and regulations that apply to us could have an adverse effect on us and our shareholders.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made, and we undertake no obligation to update any such statement now or in the future.