$303-Mil Deal Of Koger Non-Core Assets Done

AUSTIN-The sale of 39 buildings in Austin and San Antonio and properties in four other cities has closed between Koger Equity Inc., the seller, and buyer AP-Knight, LP, an affiliate of New York-based Apollo Real Estate Investment Fund. AP-Knight is paying $303 million, which included $207 million cash and the exchange of AREIF’s 5.73 million shares of Boca Raton, FL-based Koger Equity common stock.

Koger also will receive a membership interest in an AREIF subsidiary, which will provide Koger with a 20% participation in the net cash flow from the disposed assets after AREIF receives a 15% internal rate of return on its equity investment.

Koger will use the net cash from the sale to pay for strategic investment opportunities in high growth markets, repay debt and fund a one-time special gain distribution to Koger shareholders.