EastGroup Properties Acquires Charlotte, NC Buildings for $41.9M

JACKSON, MS– EastGroup Properties (NYSE-EGP) has acquired a portfolio of properties in metropolitan Charlotte, North Carolina, for a purchase price of $41.9 million. (Downtown Charlotte photo top left)

The portfolio consists of five buildings with 669,000 square feet in four different locations and 9.9 acres of developable land. In total, the buildings are 86% leased to 14 customers and are projected to generate a 6.4% yield at current occupancy and a 7.5% stabilized cash yield at 100% occupancy.

David H. Hoster II, President and CEO, stated, "The acquisition of this portfolio is EastGroup's fourth investment in Charlotte and increases our total ownership in that market to over 1.6 million square feet. This acquisition reflects our continued pursuit of both acquisition and development opportunities in Charlotte."

EastGroup Properties, Inc. is a self-administered equity real estate investment trust focused on the development, acquisition and operation of industrial properties in major Sunbelt markets throughout the United States with an emphasis in the states of Florida, Texas, Arizona and California.

The Company's goal is to maximize shareholder value by being the leading provider in its markets of functional, flexible, and quality business distribution space for location sensitive customers primarily in the 5,000 to 50,000 square foot range.

The Company's strategy for growth is based on ownership of premier distribution facilities generally clustered near major transportation features in supply-constrained submarkets. EastGroup's portfolio currently includes 24.5 million square feet with an additional 2.2 million square feet of properties under development.

CONTACT:

David H. Hoster II,

President and Chief Executive Officer or
N. Keith McKey, Chief Financial Officer
(601) 354-3555

EastGroup Properties, Inc.

Web: http://www.eastgroup.net/.
P.O. Box 22728,

Jackson, MS 39225-2728
Telephone: 601/354-3555

Fax: 601/352-1441