Press Release: Security Capital
August 6, 2001
CHICAGO, IL -- Security Capital (NYSE: SCZ) announced Friday that it has closed the sale of its entire 94.1% ownership
position in CWS Communities Trust to Chateau Communities, Inc. (NYSE: CPJ) for $291.6 million in cash. Security
Capital's carrying value of the position was $256.7 million. Net proceeds from the transaction, after taxes and
transaction costs, are $270.0 million.
``Over the past year and a half, Security Capital has been focused on implementing its strategy to simplify the
organization,'' said C. Ronald Blankenship, Vice Chairman of Security Capital. ``With the completion of this transaction,
Security Capital has reduced the number of companies in which it holds ownership positions from 18 to 12. The company
continues to work to intelligently reposition its remaining businesses and plans to concentrate its capital in
six private operating divisions.''
Proceeds of the sale will be used to increase Security Capital's ownership in certain of its existing businesses
as well as to fund additional share repurchases. Following the transaction, the company has no balance on its $450
million line of credit. Macquarie Capital Partners LLC served as financial advisor to Security Capital.
Security Capital is a leading international real estate operating management company. The company's strategy is
to own all or a high percentage of six real estate businesses that function as private operating divisions and
to eliminate the discount to the underlying value of its assets. Security Capital currently has ownership positions
in 12 real estate businesses. The company plans to reposition or sell its investment in several of these businesses
and focus its capital in six private operating divisions. These divisions must hold one of the top two market positions
in their specific niche and create measurable brand value, as well as generate significant income from services
and managed capital. Security Capital will build on the operating strengths of the remaining private divisions
to achieve superior sustainable financial results. The principal offices of Security Capital and its directly owned
affiliates are in Atlanta, Brussels, Chicago, El Paso, Houston, London, Luxembourg, New York and Santa Fe.
This press release contains certain statements that are neither reported financial results nor other historical
information. These statements are forward-looking statements within the meaning of the safe-harbor provisions of
the U.S. federal securities laws. These statements reflect the current views of Security Capital with respect to
future events and are not guarantees of future performance. Because these forward-looking statements are subject
to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the
statements. Many of these risks and uncertainties relate to factors that are beyond the company's ability to control
or estimate precisely, such as future market conditions, the behavior of other market participants, the actions
of governmental regulators and other risk factors detailed in Security Capital's reports filed with the Securities
and Exchange Commission. You are cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date of these materials. The company does not undertake any obligation to publicly release
any revisions to these forward-looking statements to reflect events or circumstances after the date of these materials.
SOURCE: Security Capital