<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): May 31, 2000
COPLEY PENSION PROPERTIES VII;
A REAL ESTATE LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-20126 04-3035851
(Commission File Number) (IRS Employer Identification No.)
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
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
<PAGE>
Item 2. Acquisition or Disposition of Assets.
-----------------------------------------------
Copley Pension Properties VII; A Real Estate Limited Partnership (the
"Partnership") owns a 75% partnership interest in South Bay/Copley VII
Associates (the "Joint Venture"), a California general partnership organized to
own real property. The remaining 25% is owned by South Bay Construction and
Development Inc., a California corporation. On May 31, 2000, the Joint Venture
sold its property located at 1539 & 1545 Parkmoor Avenue, San Jose, California
to an unaffiliated third party (the "Buyer") for gross proceeds of $11,725,000.
The selling price was determined by arm's length negotiations between the Joint
Venture and the Buyer. The Partnership received net proceeds of approximately
$10,978,000, representing a return of capital and accrued priority return
totaling approximately $9,868,000, and its 75% share of residual proceeds of
approximately $1,110,000. The Partnership recognized a gain of approximately
$2,617,000.
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 March 31, 2000 (Exhibit A). The pro forma income statements
are presented for the fiscal year ended December 31, 1999 (Exhibit B) and the
three month period ended March 31, 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: June 13, 2000 COPLEY PENSION PROPERTIES VII;
A REAL ESTATE LIMITED PARTNERSHIP
(Registrant)
By: Seventh Copley Corp.,
Managing General Partner
By: /s/ Alison Husid Cutler
---------------------------------
Name: Alison Husid Cutler
Title: President, Chief Executive
Officer and Director
2
<PAGE>
<TABLE>
<CAPTION>
Copley Pension Properties VII EXHIBIT A
A Real Estate Limited Partnership
Pro Forma Balance Sheet
March 31, 2000
Unaudited
Pro Forma March 31, 2000
March 31, 2000 Adjustment Pro Forma
---------------- ---------------- ------------------
<S> <C> <C> <C>
ASSETS
Joint Venture $ 801,295 $ 0 $ 801,295
Property, net 2,392,956 0 2,392,956
Joint venture, held for disposition, net 8,010,353 ($8,010,353) (a) 0
Cash and cash equivalents 3,667,472 10,978,885 (a) 14,646,357
--------------- --------------- ------------------
$14,872,076 $ 2,968,532 $17,840,608
=============== =============== ==================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 57,865 $ 0 $ 57,865
Accrued management fee 31,021 0 31,021
Deferred disposition fees 1,033,108 351,750 (b) 1,384,858
--------------- --------------- ------------------
Total liabilities 1,121,994 351,750 1,473,744
--------------- --------------- ------------------
Partners' capital (deficit):
Limited partners ($454.22 per unit;
160,000 units authorized, 42,076
units issued and outstanding) 13,746,095 2,590,614 (a) 16,336,709
General partners 3,987 26,168 (a) 30,155
--------------- --------------- ------------------
Total partners' capital 13,750,082 2,616,782 16,366,864
--------------- --------------- ------------------
$14,872,076 $ 2,968,532 $17,840,608
=============== =============== ==================
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Copley Pension Properties VII 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 $ 937,404 $ 0 $ 937,404
Property operating expenses (265,271) 0 (265,271)
Depreciation and amortization (90,317) 4,200 (c) (86,117)
--------------- --------------- ------------------
581,816 4,200 586,016
Equity in joint venture earnings 1,075,117 (1,017,944) (c) 57,173
--------------- --------------- ------------------
Total real estate operations 1,656,933 (1,013,744) 643,189
Gain on sale of property 3,287,303 0 3,287,303
--------------- --------------- ------------------
Total real estate activity 4,944,236 (1,013,744) 3,930,492
Interest on cash equivalents and short term
investments 262,609 0 262,609
--------------- --------------- ------------------
Total investment activity 5,206,845 (1,013,744) 4,193,101
Portfolio Expenses
Management fee 158,173 (96,906) (f) 61,267
General and administrative 177,261 (6,000) (g) 171,261
--------------- --------------- ------------------
335,434 (102,906) 232,528
--------------- --------------- ------------------
Net income (loss) $ 4,871,411 ($910,838) $ 3,960,573
=============== =============== ==================
Net income (loss) per limited partnership unit $114.62 ($21.43) (d) $93.19
=============== =============== ==================
Number of limited partnership units
outstanding during the year 42,076 42,076 42,076
=============== =============== ==================
</TABLE>
4
<PAGE>
<TABLE>
<CAPTION>
Copley Pension Properties VII EXHIBIT C
A Real Estate Limited Partnership
Pro Forma Income Statement
Three Months Ended March 31, 2000
Unaudited
Three Months Ended
Three Months Ended Pro Forma March 31, 2000
March 31, 2000 Adjustment Pro Forma
------------------ --------------- ------------------
<S> <C> <C> <C>
Investment Activity
Property rentals $ 127,324 $ 0 $ 127,324
Property operating expenses (51,425) 0 (51,425)
Depreciation and amortization (35,644) 0 (35,644)
--------------- --------------- ------------------
40,255 0 40,255
Joint venture earnings 233,891 (252,635) (e) (18,744)
--------------- --------------- ------------------
Total real estate activity 274,146 (252,635) 21,511
Interest on cash equivalents and short term
investments 51,126 0 51,126
--------------- --------------- ------------------
Total investment activity 325,272 (252,635) 72,637
Portfolio Expenses
Management fee 31,021 (30,200) (f) 821
General and administrative 45,700 0 45,700
--------------- --------------- ------------------
76,721 (30,200) 46,521
--------------- --------------- ------------------
Net income (loss) $ 248,551 ($222,435) $ 26,116
=============== =============== ==================
Net income (loss) per limited partnership unit $5.85 ($5.23) (d) $0.62
=============== =============== ==================
Number of limited partnership units
outstanding during the period 42,076 42,076 42,076
=============== =============== ==================
</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) Disposition fee incurred in connection with the disposition of the asset
discussed in Item 2 herein.
(c) Removal of 1999 operating activity related to the disposed asset discussed
in Item 2 herein.
(d) Calculation of net loss per limited partnership unit after the removal of
operating activity related to the disposed asset discussed in Item 2
herein.
(e) Removal of 2000 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.
5
