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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 31, 2000
NEW ENGLAND LIFE PENSION PROPERTIES III;
A REAL ESTATE LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-14052 04-2847256
(Commission File Number) (IRS Employer Identification No.)
World Trade Center East
Two Seaport Lane, 16th Fl.
Boston, MA 02210
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
(Former Name or Former Address, if Changed Since Last Report)
225 Franklin Street, 25th Floor
Boston, MA 02110
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
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Item 2. Acquisition or Disposition of Assets.
----------------------------------------------
New England Life Pension Properties III; A Real Estate Limited Partnership
("NELPP III"), owns a 98% interest in MORF Associates III, a Maryland general
partnership (the "Joint Venture"). The remaining 2% of the Joint Venture is
owned by NELPP/M.O.R.F. Associates III Limited Partnership, a Delaware limited
partnership ("NELPP/MORF"). NELPP III is the 50% general partner in NELPP/MORF.
The Joint Venture owns property at 5310, 5320 and 5330 Spectrum Drive,
Frederick, Maryland. On October 31, 2000, NELPP III sold its partnership
interests and all related property rights in the Joint Venture and NELPP/MORF to
M.O.R.F. III Associates Limited Partnership, a Maryland limited partnership (the
"Buyer") for gross proceeds of $6,732,467. The selling price was determined by
arm's length negotiations between NELPP III and the Buyer. The Partnership
received net proceeds of approximately $6,700,000 and recognized a gain of
approximately $879,000.
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 as of June 30, 2000 (Exhibit A). The pro forma income statements
are presented for the fiscal year ended December 31, 1999 (Exhibit B) and the
six month period ended June 30, 2000 (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: November 13, 2000 NEW ENGLAND LIFE PENSION PROPERTIES
III; A REAL ESTATE LIMITED
PARTNERSHIP
(Registrant)
By: Copley Properties Company III, Inc.
Managing General Partner
By:/s/ Alison L. Husid
---------------------------------
Name: Alison L. Husid
Title: President and Chief Executive
Officer
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<TABLE>
<CAPTION>
NEW ENGLAND LIFE PENSION PROPERTIES III EXHIBIT A
A Real Estate Limited Partnership
Pro Forma Balance Sheet
June 30, 2000
Unaudited
Pro Forma June 30, 2000
June 30, 2000 Adjustment Pro Forma
ASSETS
<S> <C> <C> <C>
Property, net $0 $0 $0
Property held for disposition, net 5,835,901 (5,835,901)(a) 0
Cash and cash equivalents 310,296 6,715,196 (a) 7,025,492
-------------- ------------ ----------------
$6,146,197 $879,295 $7,025,492
============== ============ ================
</TABLE>
<TABLE>
<CAPTION>
LIABILITIES AND PARTNERS' CAPITAL
<S> <C> <C> <C>
Accounts payable $88,009 $0 $88,009
Accrued management fee 13,328 0 13,328
-------------- ------------ ----------------
Total liabilities 101,337 0 101,337
-------------- ------------ ----------------
Partners' capital (deficit):
Limited partners ($183.60 per unit;
75,000 units authorized, 68,414
units issued and outstanding) 6,043,367 870,502 (a) 6,913,869
General partners 1,493 8,793 (a) 10,286
-------------- ------------ ----------------
Total partners' capital 6,044,860 879,295 6,924,155
-------------- ------------ ----------------
$6,146,197 $879,295 $7,025,492
============== ============ ================
</TABLE>
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<TABLE>
<CAPTION>
NEW ENGLAND LIFE PENSION PROPERTIES III EXHIBIT B
A Real Estate Limited Partnership
Pro Forma Income Statement
Year Ended December 31, 1999
Unaudited Year Ended
Year Ended Pro Forma December 31, 1999
December 31, 1999 Adjustment Pro Forma
<S> <C> <C> <C>
Investment Activity
Property rentals $ 1,165,510 $(1,117,513)(b) $ 47,997
Property operating expenses (424,157) 385,873 (b) (38,284)
Depreciation and amortization (237,056) 225,442 (b) (11,614)
----------- ----------- -----------
504,297 (506,198) (1,901)
Gain on sale of property 1,509,931 0 1,509,931
----------- ----------- -----------
Total real estate activity 2,014,228 (506,198) 1,508,030
Interest on cash equivalents and short term investments 80,774 0 80,774
----------- ----------- -----------
Total investment activity 2,095,002 (506,198) 1,588,804
Portfolio Expenses
Management fee 138,332 (66,960)(e) 71,372
General and administrative 240,825 (4,000)(f) 236,825
----------- ----------- -----------
379,157 (70,960) 308,197
----------- ----------- -----------
Net income (loss) $ 1,715,845 $( 435,238) $ 1,280,607
=========== =========== ===========
Net income (loss) per limited partnership unit $ 24.83 $( 6.30)(c) $ 18.53
=========== =========== ===========
Number of limited partnership units
outstanding during the year 68,414 68,414 68,414
=========== =========== ===========
</TABLE>
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<TABLE>
<CAPTION>
NEW ENGLAND LIFE PENSION PROPERTIES EXHIBIT C
A Real Estate Limited Partnership
Pro Forma Income Statement
Six Months Ended June 30, 2000
Unaudited
Six Months Ended Pro Forma June 30, 2000
June 30, 2000 Adjustment Pro Forma
Investment Activity
<S> <C> <C> <C>
Property rentals $ 450,071 $(450,071)(d) $ 0
Property operating expenses (48,628) 48,628 (d) 0
Depreciation and amortization (112,074) 112,074 (d) 0
--------- --------- ---------
Total real estate activity 289,369 (289,369) 0
Interest on cash equivalents 8,534 0 8,534
--------- --------- ---------
Total investment activity 297,903 (289,369) 8,534
Portfolio Expenses
Management fee 26,655 (26,655)(e) 0
General and administrative 103,455 0 103,455
--------- --------- ---------
130,110 (26,655) 103,455
--------- --------- ---------
Net income $ 167,793 $(262,714) $( 94,921)
========= ========= =========
Net income per limited partnership unit $ 2.43 $ (3.80)(c) $ (1.37)
========= ========= =========
Number of limited partnership units
outstanding during the period 68,414 68,414 68,414
========= ========= =========
</TABLE>
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain to the Partners on such disposition.
(b) Removal of 1999 operating activity related to the disposed asset discussed
in Item 2 herein.
(c) Calculation of net loss per limited partnership unit after the removal of
operating activity related to the disposed asset discussed in Item 2 herein.
(d) Removal of 2000 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(e) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(f) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.
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