Highwood Properties Buys JV Partner's 60% Interest in HIW-KC Orlando for $113.3M

Highwoods Properties, Inc. HIW has acquired its joint venture partner's 60% interest in HIW-KC Orlando, LLC, which owns five office buildings encompassing 1.3 million square feet in CBD Orlando, for a purchase price of $113.3 million. The properties are valued at $195.9 million, including $7.0 million of planned near-term building improvements. This equates to a total asset value of $153 per square foot, a 40% discount to estimated replacement cost. The Company's total incremental investment is expected to be $117.5 million. Real Estate Value: 100% 60% ----------- ----------- Purchase Price $ 188.9 $ 113.3 Near-Term Building Improvements 7.0 4.2 ----------- ----------- Total Investment $ 195.9 $ 117.5 =========== =========== Equity Value: 100% 60% ----------- ----------- Purchase Price $ 188.9 $ 113.3 Less Debt (127.9) (76.7) ----------- ----------- Equity $ 61.0 $ 36.6 =========== ===========