EastGroup Properties Acquires Three Dallas Buildings for $6.7M

JACKSON, MS, Aug.18, 2009– EastGroup Properties (NYSE-EGP) today announced the acquisition of three business distribution buildings containing 227,000 square feet in Dallas for a combined purchase price of $6,675,000.



The buildings, which will be renamed Interstate Distribution Center V, VI and VII, are located in the city's close-in northwest submarket along the Stemmons Freeway (top right photo).

They were constructed in 1979-81 and are presently 87% occupied by six customers.



The buildings are projected to generate an annualized 9.2% yield at their current occupancy.

David H. Hoster II, (bottom left photo) President and CEO, stated, "The acquisition of Interstates V, VI and VII allows EastGroup to expand in an attractive in-fill submarket where we have a successful existing base of assets.


"It increases our cluster of business distribution properties there to over 800,000 square feet in ten buildings. We are continuing to look for additional acquisition opportunities in our major markets."


CONTACT: David H. Hoster II, President and Chief Executive Officer or N. Keith McKey, Chief Financial Officer (601) 354-3555