Great Elm Group (GEG) Sells Real Estate Business for $4.6M

Great Elm Group, Inc. (NASDAQ: GEG) today announced that it sold its entire ownership interest in two Class A office buildings located in Fort Myers, Florida (collectively, the “Real Estate Business”) to an affiliate of Monomoy Properties, LLC (“Monomoy”), a privately-held industrial properties focused REIT managed by Imperial Capital Asset Management, LLC, for a cash payment of $4.6 million. Pursuant to the terms of the transaction, GEG invested the proceeds of the sale into newly issued membership interests of Monomoy. GEG acquired the Real Estate Business in March 2018 for $2.7 million.

“This is an excellent transaction for GEG,” stated Peter A. Reed, Chief Executive Officer of GEG. “It improves our overall capitalization as the debt associated with the Real Estate Business will no longer be included in GEG’s financial statements, resulting in consolidated operating and leverage ratios that are more reflective of our current operating businesses.”

Mr. Reed stated further, “Additionally, this transaction is beneficial from both a strategic and risk management perspective as it diversifies our holdings from a single location real estate asset to membership interests in a diversified industrial properties REIT portfolio, with the added benefits of cash flow for the company generated through ongoing dividend payments and improved liquidity.”

Additional details and information regarding the transaction, including pro forma financial information, is available in a current report on Form 8-K filed today by GEG with the Securities and Exchange Commission.

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