N@N

Announcement of Portfolio Acquisition and Three Development Starts

^{Published on 2010-06-07 13:05:04 - Market Wire}
 

AUSTIN, Texas--([ BUSINESS WIRE ])--American Campus Communities, Inc. (NYSE:ACC), one of the nation's largest developers, owners and managers of high-quality student housing properties, today announced that it has made meaningful progress in its three major growth segments: acquisitions, owned developments and third-party development services.

"As we discussed in our shareholder letter last month, we are focused on creating value for our shareholders through continued growth in each segment of our business"

Acquisitions

American Campus has entered into an agreement to purchase the full ownership interests in 14 student housing properties containing 8,534 beds currently owned in two joint ventures, in which the company currently has a 10 percent interest. The company is purchasing the 90 percent interest held by two separate institutional funds managed by Fidelity Real Estate Group. ACC will acquire the institutional fundsa� 90 percent interest in the 14 properties based on a total estimated value of approximately $348.9 million, which includes $252.2 million in mortgage loan debt at a weighted average interest rate of 5.85 percent and a weighted average remaining term to maturity of 3.5 years. Two of the existing joint venture properties are not included in the acquisition and will remain in the existing joint venture. This transaction is expected to close in the third quarter of 2010 and is subject to various closing conditions.

Owned Development

The company is also announcing the commencement of development on two wholly-owned assets. Construction has commenced on an off-campus project that will serve students attending the University of Texas, San Antonio (UTSA). The $35.4 million development is adjacent to the main campus and will consist of 14 residential buildings featuring 792 private bedroom and private bathroom accommodations in a townhome configuration. The property will feature an 8,000 square-foot community center including a fitness center, student lounge, game room, computer lab, covered patio and resort-style swimming pool. The community is anticipated to open for occupancy Fall 2011.

Additionally, under the companya�s American Campus Equity (ACE�) program, ACC has executed a ground lease with the University of New Mexico (UNM) to develop an 864-bed student community on the Universitya�s South Campus. Construction of the project is scheduled to begin in early June 2010 with anticipated occupancy in Fall 2011. This is the companya�s third ACE transaction, whereby the company invests its equity and owns on-campus housing allowing the University to preserve its debt capacity. The UNM undergraduate student community will feature fully furnished, apartment-style units with private bedrooms, private bathrooms, a large living area, fully equipped kitchens, and washer and dryer. The 12,000-square-foot community center will contain onsite management offices, a computer center, study rooms, game room, state-of-the-art fitness center and outdoor amenities featuring a resort-style swimming pool.

Third-Party Development Services

The company has closed on a $60.8 million tax-exempt bond issuance for the third-party development of a project at Edinboro University. Construction has commenced on the 856-bed community, which is anticipated to open for occupancy in Fall 2011. This is ACCa�s second phase of student housing on the Edinboro campus.

aAs we discussed in our shareholder letter last month, we are focused on creating value for our shareholders through continued growth in each segment of our business,a said Bill Bayless, American Campus CEO. aThe acquisition of the Fidelity joint venture properties creates an opportunity for us to further enhance net asset value by gaining full control over operational and asset management decisions. Our owned developments at UTSA and UNM both benefit from favorable construction pricing, which allows us to enter those markets at acceptable yields while offering attractive student rents. In addition, the closing of the Edinboro transaction signals improvement in the financing market for our third party project-based debt transactions. We are pleased with our progress on all fronts.a

About American Campus Communities

American Campus Communities, Inc. is one of the largest developers, owners and managers of high-quality student housing communities in the United States. The company is a fully integrated, self-managed and self-administered equity real estate investment trust (REIT) with expertise in the design, finance, development, construction management, and operational management of student housing properties. American Campus Communities owns 84 student housing properties containing approximately 51,600 beds. The company also owns a minority interest in 16 joint venture properties containing approximately 9,800 beds. Including its owned, joint venture and third-party managed properties, ACC's total managed portfolio consists of 133 properties with approximately 86,200 beds. For more information on the company visit [ americancampus.com ].

Forward-Looking Statements

In addition to historical information, this press release contains forward-looking statements under the federal securities law. These statements are based on current expectations, estimates and projections about the industry and markets in which American Campus operates, management's beliefs, and assumptions made by management. Forward-looking statements are not guarantees of future performance and involve certain risks and uncertainties, which are difficult to predict.