S&P Withdraws Rating on Pacific Gulf Properties Inc.
20 November 2000
S&P Withdraws Rating on Pacific Gulf Properties Inc.
NEW YORK--Standard & Poor's--Nov. 20, 2000--Standard & Poor's today withdrew its double-'B' corporate credit rating on Pacific Gulf Properties Inc. The company has no rated securities outstanding.This action follows recent shareholder approval of the sale of the company's industrial property portfolio, as well as the sale of its remaining assets and the subsequent liquidation and dissolution of Pacific Gulf. The timing of Pacific Gulf's liquidation is contingent upon the timing of asset sales.
Newport Beach, Calif.-based Pacific Gulf is a REIT that owns a $970 million (undepreciated real estate cost) portfolio of industrial and multifamily properties. Pacific Gulf expects to complete the $860 million sale of its industrial property portfolio, which accounts for over 80% of its net operating income, sometime this month. In addition, the company recently received about $61 million in gross proceeds from the sale of four multifamily communities and expects to garner another $62 million for the pending sale of another eight communities. Aggregate proceeds from these identified property sales of about $983 million already exceed current undepreciated book value. The remaining assets subject to liquidation (estimated at over $100 million of book value) primarily consist of Pacific Gulf's active-senior communities, Standard & Poor's said. -- CreditWire