Benzinga | Dec 23, 2020 04:15PM EST

CoreCivic Announces the Sale of 42 Non-Core Government Leased Properties for $106.5M

CoreCivic, Inc. (NYSE:CXW) (the "Company") announced today that following an extensive and ongoing marketing process for the proposed sale of certain non-core real estate assets in its CoreCivic Properties segment, it closed on the sale of 42 of its non-core government leased properties to a third party for an aggregate purchase price of $106.5 million. The assets sold represented approximately 573,000 gross rentable square feet and are expected to generate approximate net proceeds of $27.0 million, following repayment of non-recourse mortgage notes associated with some of the properties and other transaction-related costs. Net cash proceeds will be utilized to repay borrowings under the Company's revolving credit facility.

"We are pleased with the positive market response we have seen throughout the marketing process of our non-core government leased properties, and today's closing announcement is a positive initial step in the process to recycle capital towards higher returning opportunities," said Damon Hininger, CoreCivic's President and Chief Executive Officer. "The remaining non-core assets we are evaluating for sale are significantly larger in terms of gross rentable square feet, both individually and in aggregate, and we remain optimistic in our prospects for consummating additional sales."

The Company's original purchase price for the 42 properties sold was $98.7 million. Subsequent to the close of the transaction, the CoreCivic Properties portfolio consists of 15 properties representing 2.7 million square feet, including five non-core government leased properties representing 1.1 million gross rentable square feet. In addition to the CoreCivic Properties portfolio, CoreCivic operates 48 correctional and detention facilities, 42 of which it owns, with a total design capacity of approximately 71,000 beds, and 27 residential reentry centers with a total design capacity of approximately 5,000 beds.