American Community to consider sale of land assets as part of restructuring

By Lisa Kerner

Charlotte, N.C., March 28 - American Community Properties Trust said it is considering restructuring so that it may elect to be treated as a real estate investment trust for U.S. federal income tax purposes.

The restructuring was proposed by the family of J. Michael Wilson, American Community's chairman and chief executive officer, as well as by the company's majority shareholders, the Wilson family.

In a schedule 13D filed with the Securities and Exchange Commission on March 28, the Wilson family said has considered strategic alternatives for the company due to the lack of interest to date in either financing a potential recapitalization or sale of American Community.

The Wilson family said it believes that the company's two distinct lines of business may limit its growth potential and may be deter potential acquirers and investors. The business lines are American Community's multi-family and commercial rental properties, and its community development and homebuilding business, a company news release said.

According to the release, the Wilson family proposes separating the development assets, or land assets, from the rental properties, or investment assets. To facilitate the separation, the Wilson family has offered to purchase the land assets from the company in exchange for a portion of their existing common shares.

American Community's special committee said it would consider such a sale if the price is in the best interest of the company's shareholders.

The special committee is being advised by the investment banking firm of Robert W. Baird & Co. Inc.

American Community is a diversified real estate organization based in St. Charles, Md. The company also has operations in Puerto Rico.

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