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GMH Leaders Opt for Restructure; No Sale

NEWTOWN SQUARE, PA-While the troubled REIT continues as an independent company, it seeks sales or JVs for student housing properties and tightens its belt.

By Marita Thomas | Updated on December 18, 2006

NEWTOWN SQUARE, PA-A special committee, formed by trustees of GMH Communities Trust this March to analyze the company’s standing in the market, has been dissolved after concluding that a sale of the company is not in the best interest of shareholders. While the locally based military and student housing REIT will continue as an independent company, management has initiated steps to “financially reposition the company,” according to a statement.

“We understand that the company needs to rebuild credibility within the marketplace,” says Gary Holloway Sr., president, chairman and CEO, in a statement. The initiatives, outlined briefly in the statement, will be detailed in a conference call on Dec. 20.

They focus on the student housing division and include a de-emphasis on acquisitions short-term and the exploration of selling, refinancing or joint-venturing some currently owned properties in the portfolio. The sales or joint ventures will allow the division to maintain management of the assets. Under a JV, GMH says it would obtain cash equity from the partner and maintain an income stream from management fees.

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