The venture will borrow $276 million from GE Capital Real Estate to finance the deal, which gives Miller Global 80% interest. The team expects to spend $62 million to develop properties in Atlanta and Orlando and Tampa, FL but will equally share ownership in this segment of the operation. Highwoods' portfolio includes office buildings in those three cities plus Raleigh, NC, all of which will continue to be leased and managed by the REIT.
The initial transaction calls for Highwoods to sell 21 offices buildings and four development sites in Georgia, Florida and North Carolina to the new venture. In exchange, it will get cash and a 20% stake in the venture.
Myron "Micky" Miller heads up Miller Global, a privately held company being run by his son Jim Miller. The elder Miller is the former partner of billionaire Marvin Davis on his real estate ventures.
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