<PAGE> 1
EXHIBIT 99.1
AIMCO AGREES TO ACQUIRE INTERESTS IN OXFORD ENTITIES WHICH
OWN INTERESTS IN 36,000 UNITS FOR $301 MILLION IN CASH AND
SECURITIES
DENVER, June 28, 2000/PRNewswire/ --
Apartment Investment and Management Company (NYSE: AIV or "Aimco") and Oxford
Realty Financial Group ("ORFG") announced today that they have entered into
definitive agreements pursuant to which Aimco will acquire for $301 million all
the stock and other interests (not currently owned by Aimco) held by officers
and directors in the Oxford entities which own and control the Oxford
Properties. Merrill Lynch & Co. acted as financial advisor to ORFG and its
affiliates in connection with this transaction. Lehman Brothers and Banc of
America Securities L.L.C. acted as financial advisors to AIMCO in connection
with the transaction.
The Oxford Properties are 166 apartment communities including 36,662 units,
located in 18 states. The properties are owned by 166 separate partnerships,
subject to mortgage loans totaling $1.4 billion (Oxford's pro-rata share of the
indebtedness is $555 million). The transaction is expected to close in the
third quarter and to add an estimated $0.23 per share to Aimco's calendar year
2001 FFO and $0.21 per share to 2001 AFFO.
In the transactions announced today, Aimco has agreed to pay $241 million in
cash and $60 million in Aimco Common O.P. Units and Class A Common Stock at a
price per unit and per share based on the 20 day average share price calculated
5 business days prior to the closing with a range of between $40 and $45 per
unit/share. In addition, approximately $13 million of transaction costs will be
incurred. The transaction is subject to customary closing conditions.
Aimco will borrow the cash portion of the purchase price from Bank of America,
N.A. and Lehman Brothers pursuant to a two-year bridge loan, which Aimco
expects to repay from presently scheduled property refinancings, expected
property sales, and internal cash flow.
Aimco, through an affiliate, presently manages 165 of the 166 Oxford Properties
pursuant to long-term contracts and is a stockholder in certain of the Oxford
entities. In addition to the Oxford Properties, Aimco is acquiring the entity
which owns the managing general partner position in Oxford Tax-Exempt Fund II,
L.P. (ASE: OTF or "OTEF"). OTEF holds tax-exempt bonds secured primarily by
mortgages on certain of the Oxford Properties. In a separate transaction, Aimco
has agreed to purchase approximately 700,000 OTEF securities which represent
approximately a 9% limited partnership interest.
Additional information on the Oxford Properties is included in Exhibit 1.
"Having managed the Oxford Properties for many years, we know the properties
well and are confident of their value. We are particularly gratified that Leo
Zickler and his senior management team, having observed closely Aimco's
management of their properties, elected to make a substantial investment in
Aimco equity securities. We look forward to continuation of this important and
satisfying relationship.," said Peter Kompaniez, AIMCO's President and Vice
Chairman.
The foregoing estimates of contribution to FFO and AFFO are forward- looking
statements that involve numerous risks and uncertainties that could result in
actual results differing materially from the expectations set forth above.
Specific assumptions include savings in expenses generated from general and
administrative savings, interest rate savings from refinancings, restructuring
of property operations in accordance with Aimco policies and practices and
<PAGE> 2
unification of management information systems. Some additional factors that
could affect the foregoing expectations include whether the transaction closes,
general economic conditions, competition in and performance of local real
estate markets, competition from other property management companies, AIMCO's
ability to obtain financing, increases in interest rates, increases in
operating costs and real estate taxes, as well as other risks detailed from
time to time in AIMCO's filings with the Securities and Exchange Commission.
AIMCO is a real estate investment trust with headquarters in Denver, Colorado
and 31 regional operating centers, which holds a geographically diversified
portfolio of apartment communities. AIMCO, through its subsidiaries, operates
1,834 properties, including approximately 352,000 apartment units, and serves
approximately one million residents. AIMCO's properties are located in 48
states, the District of Columbia and Puerto Rico.
A conference call will be conducted on Wednesday, June 28, 2000 at 4:15 P.M.
Eastern time. You may participate in the conference call by dialing
1-800-374-0616 approximately five minutes before the conference call is
scheduled to begin and indicating that you wish to join the Apartment
Investment and Management Company Oxford conference call.
For more information about AIMCO, contact Paul McAuliffe, Executive Vice
President and Chief Financial Officer at 303-757-8101, e-mail AIMCO at
[email protected] or visit AIMCO's web site at www.Aimco.com.
<PAGE> 3
OXFORD PORTFOLIO
EXHIBIT 1
TABLE 1 - PROPERTY TYPE MIX
<TABLE>
<CAPTION>
AIMCO'S
EFFECTIVE
TYPE TOTAL # UNITS # UNITS
------------ ------------ ------------
<S> <C> <C>
Conventional 29,350 8,639
Affordable 5,675 215
Other 1,637 1,094
------------ ------------
Total 36,662 9.948
============ ============
</TABLE>
TABLE 2 - GEOGRAPHIC MIX
<TABLE>
<CAPTION>
AIMCO EFFECTIVE # UNITS
---------------------------------------------------------------------------------
LOCATION CONVENTIONAL AFFORDABLE SENIOR TOTAL % OF TOTAL
-------- ------------ ---------- ------ ----- ----------
<S> <C> <C> <C> <C> <C>
Florida 2,157 320 2,477 24.9
Virginia 1,359 3 170 1,532 15.4
Maryland 869 26 895 9.0
California 776 776 7.8
Michigan 553 103 656 6.6
Illinois 601 4 605 6.1
Indiana 299 9 308 3.1
Ohio 310 13 153 476 4.8
Georgia 369 3 175 547 5.5
Texas 368 197 565 5.7
Pennsylvania 391 391 3.9
Connecticut 210 15 79 304 3.1
North Carolina 145 3 148 1.5
Kentucky 52 36 88 0.9
South Carolina 56 56 0.6
New Hampshire 35 35 0.4
Minnesota 64 64 0.6
Tennessee 25 25 0.3
-------- -------- -------- -------- -------
Total 8,639 215 1,094 9.948 100.0%
======== ======== ======== ======== =======
</TABLE>
<PAGE> 4
TABLE 3 - OXFORD CONTRIBUTION TO ANNUAL FREE CASH FLOW AND AFFO
<TABLE>
<CAPTION>
OXFORD
ACQUISITION
CONTRIBUTION
2001 PRO FORMA
(IN THOUSANDS)
-----------------
<S> <C>
REAL ESTATE
Conventional:
Greater than $800 per unit $ 29,734
From $700 to $800 12,027
From $600 to $700 5,812
From $500 to $600 2,890
Less than $500 306
------------
Subtotal conventional real estate
contribution to Free Cash Flow 50,769
Affordable 808
Other real estate (senior/assisted living) 11,077
------------
Total real estate contribution
To Free Cash Flow 62,654
SERVICE BUSINESS
Management contracts (property and asset
management)
Controlled properties 17,432
INTEREST INCOME
General partner loan interest 3,834
------------
TOTAL CONTRIBUTION TO FREE CASH FLOW 83,920
INTEREST EXPENSE
Secured debt (58,952)
------------
AFFO $ 24,968
Add back: Capital Expenditures 2,985
------------
FFO $ 27,953
============
</TABLE>
