<PAGE>
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
Date of Report (Date of Earliest Event Reported): October 13, 1998
NEW ENGLAND LIFE PENSION PROPERTIES II; A REAL ESTATE LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-13323 04-2803902
(Commission File Number) (IRS Employer Identification No.)
225 Franklin Street, Boston, MA 02110
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
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Item 2. Acquisition or Disposition of Assets.
- ----------------------------------------------
On October 13, 1998, New England Life Pension Properties II; A Real Estate
Limited Partnership (the "Partnership") sold the property known as Case
Communications to an unaffiliated third party (the "Buyer") for total gross
proceeds of $20,008,520. The terms of the sale were determined by arms-length
negotiation between the Buyer and AEW Real Estate Advisors, Inc., on behalf of
the Partnership. The Partnership received net proceeds of approximately
$18,069,000 representing repayment for its ground lease and mortgage loan
investments and residual proceeds. The Partnership recognized a gain of
approximately $6,119,000.
Item 7. Financial Statements and Exhibits.
- -------------------------------------------
In connection with the disposition of the asset discussed in Item 2 above,
pro forma financial statements are presented below. The pro forma balance sheet
is presented for the period ended June 30, 1998 (Exhibit A). The pro forma
income statements are presented for the fiscal year ended December 31, 1997
(Exhibit B) and the period ended June 30, 1998 (Exhibit C).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: October 27, 1998 NEW ENGLAND LIFE PENSION PROPERTIES II;
A REAL ESTATE LIMITED PARTNERSHIP
(Registrant)
By: Copley Properties Company II, Inc.
General Partner
By: J. Christopher Meyer III
--------------------------------
Name: J. Christopher Meyer III
Title: President, Chief Executive
Officer and Director
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New England Life Pension Properties II; EXHIBIT A
A Real Estate Limited Partnership
Pro Forma Balance Sheet
June 30, 1998
Unaudited
<TABLE>
<CAPTION>
Pro Forma June 30, 1998
June 30, 1998 Adjustment Pro Forma
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
Real estate investments:
Property, net $ 11,649,067 $ (11,649,067)(a) $ -
------------- ------------- -------------
11,649,067 (11,649,067) -
Cash and cash equivalents 3,967,597 18,068,655 (a) 22,036,252
Interest and rent receivables 15,949 - 15,949
------------- ------------- -------------
$ 15,632,613 6,419,588 $ 22,052,201
============= ============= =============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 39,070 - $ 39,070
Accrued management fee 185,708 - 185,708
Deferred disposition fees 1,172,249 300,128 (b) 1,472,377
------------- ------------- -------------
Total liabilities 1,397,027 300,128 1,697,155
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Partners' capital:
Limited partners ($172.58 per unit;
110,000 units authorized, 39,917 units
issued and outstanding) 14,123,936 6,058,265 (a) 20,182,201
General partner 111,650 61,195 (a) 172,845
------------- ------------- -------------
Total partners' capital 14,235,586 6,119,460 20,355,046
------------- ------------- -------------
$ 15,632,613 $ 6,419,588 $ 22,052,201
============= ============= =============
</TABLE>
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New England Life Pension Properties II; EXHIBIT B
A Real Estate Limited Partnership
Pro Forma Income Statement
December 31, 1997
Unaudited
<TABLE>
<CAPTION>
Pro Forma December 31, 1997
December 31, 1997 Adjustment Pro Forma
----------------- ------------- -----------------
<S> <C> <C> <C>
Investment Activity
Property rentals $ 2,960,401 $ (726,093)(c) $ 2,234,308
Property operating expenses (950,646) 195,527 (c) (755,119)
Depreciation and amortization (641,035) 76,172 (c) (564,863)
----------- ---------- -----------
1,368,720 (454,394) 914,326
Ground rentals and interest on mortgage loans 1,564,335 (1,391,061)(c) 173,274
----------- ---------- -----------
Total real estate operations 2,933,055 (1,845,455) 1,087,600
Gain on sales of property 3,723,281 6,119,460 (a) 9,842,741
----------- ---------- -----------
Total real estate activity 6,656,336 4,274,005 10,930,341
Interest on cash equivalents and short term investments 387,853 - 387,853
----------- ---------- -----------
Total investment activity 7,044,189 4,274,005 11,318,194
Portfolio Expenses
Management fee 218,407 (159,733)(f) 58,674
General and administrative 138,225 (3,650)(g) 134,575
----------- ---------- -----------
356,632 (163,383) 193,249
----------- ---------- -----------
Net income $ 6,687,557 $4,437,388 $11,124,945
=========== ========== ===========
Net income per limited partnership unit $ 165.86 $ 110.05 (d) $ 275.91
=========== ========== ===========
Number of limited partnership units
outstanding during the period 39,917 39,917 39,917
=========== ========== ===========
</TABLE>
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New England Life Pension Properties II; EXHIBIT C
A Real Estate Limited Partnership
Pro Forma Income Statement
June 30, 1998
Unaudited
<TABLE>
<CAPTION>
Pro Forma June 30, 1998
June 30, 1998 Adjustment Pro Forma
------------- ---------- -------------
<S> <C> <C> <C>
Investment Activity
Property rentals $1,386,068 (1,378,968)(e) $ 7,100
Property operating expenses (372,554) 357,069 (e) (15,485)
Depreciation and amortization (173,818) 173,818 (e) -
----------- ---------- -----------
Total real estate operations 839,696 (848,081) (8,385)
Gain on sale of property - 6,119,460 (a) 6,119,460
----------- ---------- -----------
Total real estate activity 839,696 5,271,379 6,111,075
Interest on cash equivalents and short term investments 101,367 - 101,367
----------- ---------- -----------
Total investment activity 941,063 5,271,379 6,212,442
Portfolio Expenses
Management fee 226,981 (86,675)(f) 140,306
General and administrative 69,618 - 69,618
----------- ---------- -----------
296,599 (86,675) 209,924
----------- ---------- -----------
Net income $ 644,464 $5,358,054 $6,002,518
=========== ========== ===========
Net income per limited partnership unit $ 15.98 $ 132.89 (d) $ 148.87
=========== ========== ===========
Number of limited partnership units
outstanding during the period 39,917 39,917 39,917
=========== ========== ===========
</TABLE>
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain on such disposition to the Partners.
(b) Disposition fee incurred in connection with the disposition of the asset
discussed in Item 2 herein.
(c) Removal of 1997 operating activity related to the disposed asset discussed
in Item 2 herein.
(d) Calculation of net income per limited partnership unit after the removal of
operating activity and addition of the gain related to the disposed asset
discussed in Item 2 herein.
(e) Removal of 1998 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(f) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(g) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.
