Koger also will receive a membership interest in an AREIFsubsidiary, which will provide Koger with a 20% participation inthe net cash flow from the disposed assets after AREIF receives a15% internal rate of return on its equity investment.
Koger will use the net cash from the sale to pay for strategicinvestment opportunities in high growth markets, repay debt andfund a one-time special gain distribution to Kogershareholders.
Koger executives termed as non-core assets the 10 propertieswith 75 suburban office buildings and one retail center, a total of3.9 million sf, in the Texas cities and in Greensboro andCharlotte, NC, Greenville, SC and Birmingham, AL. Koger willcontinue to manage and lease the Austin and San Antonioproperties.
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