SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of earliest event reported): August 23, 1999
Merry Land Properties, Inc.
(Exact name of registrant as specified in its charter)
Georgia
(State or other jurisdiction of incorporation)
000-29778 58-2412761
(Commission File Number) (I.R.S.Employer I.D. Number)
624 Ellis Street, Augusta, Georgia 30901
(Address of principal executive offices) (Zip Code)
706/722-6756
(Registrant's telephone number including area code)
____________________________________________________________
(Former name or former address, if changed since last report)
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Filed: August 26, 1999
<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSETS. Merry Land Properties, Inc. (the
"Company") acquired the interests of ERP Operating Partnership, a subsidiary of
Equity Residential Properties Trust in entities which own the following six
apartment communities on August 23, 1999.
The apartment communities acquired are described as follows:
<PAGE>
<TABLE>
<CAPTION>
Name of Acquisition Cost Non Recourse Occupancy
Apartments Seller <F1> Market Location Units <F2> Debt <F1>
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Hammocks at ERP Operating Savannah, Georgia 308 $20,621,789.37 $18,787,000 93.5%
Long Point Partnership
Huntington ERP Operating Savannah, Georgia 147 $ 5,752,204.39 $ 5,084,000 97.3%
Partnership
Magnolia Villa ERP Operating Savannah, Georgia 144 $ 5,001,066.26 $ 4,739,000 98.6%
Partnership
Summit Place ERP Operating Charleston, 226 $ 6,939,825.63 $ 7,079,000 96.0%
Partnership South Carolina
Windsor Place ERP Operating Charleston, 224 $ 9,753,695.80 $ 8,640,000 99.1%
Partnership South Carolina
Woodcrest ERP Operating Augusta, Georgia 248 $ 5,991,756.63 $ 6,354,000 95.6%
Partnership
- -------------------------------------------------------------------------------------------------------------------------------
<FN>
<F1> Physical occupancy as of the date acquired.
</TABLE>
In six separate transactions, the Company and a wholly owned subsidiary
acquired all of the membership interests in six limited liability companies,
each of which own one of the acquired apartment communities. Each of the six
acquired communities had been owned by one of six Delaware limited liability
companies, whose members were the Company and ERP Operating Partnership, a
subsidiary of Equity Residential Properties Trust. ERP Operating Partnership
held substantially all of the capital accounts of each limited liability
company, having contributed the apartment communities to the limited liability
companies. The Company held a 50% profits interest, after payment of a
preferred return to ERP Operating Partnership, in each Delaware limited
liability company. The Company also had an option to purchase the Delaware
limited liability company interests owned by ERP Operating Partnership. The
acquisition cost listed above for each property represents the option price
paid directly or indirectly to ERP Operating Partnership for indirect ownership
interests in the properties.
The seller, ERP Operating Partnership, is unrelated to the Company.
However, ERP Operating Partnership is a subsidiary of Equity Residential
Properties Trust, which is the successor by merger to the Company's former
parent, Merry Land & Investment Company, Inc. ("Old Merry Land"). The Company
was organized and spun off to Old Merry Land's shareholders shortly before such
merger.
The acquisitions were made for cash, financed primarily by six non-recourse
loans from First Union National Bank to the Company's six new subsidiary
limited liability companies, in the amounts shown in the table above. The
remainder of the purchase price was funded with cash reserves and by the
Company's borrowing under its $2 million unsecured line of credit with First
Union National Bank.
The acquisitions were made only after a detailed review of the property's
physical condition, anticipated capital expenditures, occupancy rates, expenses
including utility rates, maintenance, grounds, property taxes and insurance all
of which were compared to competitive properties.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. The financial statements specified
by Rule 3-14 of Regulation S-X and any pro forma financial information required
pursuant to Article 11 of Regulation S-X are not included in this initial
report. Such financial statements will be filed within sixty days of the due
date of this report.
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MERRY LAND PROPERTIES, INC.
(Registrant)
/s/
By:____________________________
Dorrie E. Green
As Its Vice President
