Patriot Transportation Holding, Inc. Announces Real Estate Joint Venture
03 Agosto 2006 - 1:02AM
PR Newswire (US)
JACKSONVILLE, Fla., Aug. 2 /PRNewswire-FirstCall/ -- Patriot
Transportation Holding, Inc. (NASDAQ:PATR) announced today that its
independent directors approved a 50-50 real estate joint venture
between a subsidiary of the Company ("FRP") and Florida Rock
Industries, Inc. ("Florida Rock") to develop approximately 4,300
acres of land near Brooksville, Florida. Under the terms of the
joint venture, FRP will contribute its fee interest in 3,443 acres
that it currently leases to Florida Rock under a long-term mining
lease. FRP also will reimburse Florida Rock for one-half of the
acquisition costs (approximately $3 million) of a 288 acre
contiguous parcel recently acquired by Florida Rock from a third
party. The 288 acre parcel will be contributed to the Joint
Venture. Florida Rock will contribute 553 acres that it owns as
well as its leasehold interest in the 3,443 acres that it leases
from FRP. The joint venture will be jointly controlled by Florida
Rock and FRP, and all future capital contributions and
distributions will be made on a 50-50 basis. Management believes
that the Company ultimately will realize greater value from
development of the Brooksville property rather than continuing
under the mining lease. The property does not yet have the
necessary entitlements for real estate development. Approval to
develop real property in Florida entails an extensive entitlements
process involving multiple and overlapping regulatory jurisdictions
and often requiring discretionary action by local governments. This
process is time-consuming and often political, and the outcome is
inherently uncertain. The Company currently expects that the
entitlement process may take several years to complete. Investors
are cautioned that any statements in this press release which
relate to the future are, by their nature, subject to risks and
uncertainties that could cause actual results and events to differ
materially from those indicated in such forward-looking statements.
These include general business conditions; competitive factors;
political, economic, regulatory and climatic conditions; driver
availability and cost; regulations regarding driver qualifications
and hours of service; freight demand for petroleum products and for
building and construction materials in the Company's markets; risk
insurance markets; demand for flexible warehouse/office facilities;
ability to obtain zoning and entitlements necessary for property
development; interest rates; levels of mining activity; pricing;
energy costs and technological changes. Additional information
regarding these and other risk factors and uncertainties may be
found in the Company's filings with the Securities and Exchange
Commission Patriot Transportation Holding, Inc. is engaged in the
transportation and real estate businesses. The Company's
transportation business is conducted through two wholly owned
subsidiaries. Florida Rock & Tank Lines, Inc. is a Southeastern
transportation company concentrating in the hauling by motor
carrier of liquid and dry bulk commodities. SunBelt Transport, Inc.
serves the flatbed portion of the trucking industry in the
Southeastern states, hauling primarily construction materials. The
Company's real estate group, comprised of FRP Development Corp. and
Florida Rock Properties, Inc., acquires, constructs, leases,
operates and manages land and buildings to generate both current
cash flows and long-term capital appreciation. The real estate
group also owns real estate which is leased under mining royalty
agreements or held for investment. DATASOURCE: Patriot
Transportation Holding, Inc. CONTACT: John E. Anderson, Chief
Executive Officer, Patriot Transportation Holding, +1-904-396-5733,
ext. 101
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