Patriot to separate transportation from real estate
The separation will result in two independent, publicly-traded companies by means of a tax-free spin-off of the transportation business to Patriot shareholders. The separation, which is subject to a number of conditions including final Board approval, receipt of an opinion of tax counsel and effectiveness of a registration statement on Form 10, is expected to be completed in the next twelve months.
Patriot anticipates that after the spin-off the real estate company will operate under the name FRP Holdings, Inc. and the transportation company will use the name Patriot Transportation Holding, Inc. Anacostia Update Patriot also announced that the joint venture that it formed with its developer partner has negotiated financing for the construction of the first phase of its planned four phase master development in Washington, D.C. known as Riverfront on the Anacostia.
Under the terms of the proposed financing, Patriot will contribute up to an additional $5 million to the project. The joint venture expects to finalize financing arrangements providing for a $65 million loan with an initial four year term and approximately $17 million in EB5 secondary financing. Both these financing sources will be non-recourse to Patriot. The Company expects to finalize these financing arrangements and to commence construction by late summer 2014. ■