CoreCivic, Inc. (NYSE: CXW) has completed the sale of two detention facilities to the U.S. Department of Homeland Security for a combined gross price of $734.0 million, according to a company statement.

The transaction includes the 1,600-bed Prairie Correctional Facility in Appleton, Minnesota, sold for $495.6 million, and the 1,033-bed Midwest Regional Reception Center in Leavenworth, Kansas, sold for $238.4 million. After federal and state income taxes of approximately $182.2 million and transaction costs, CoreCivic expects net proceeds of approximately $522.5 million, which the company said may be used for debt reduction and stock repurchases.

CoreCivic said it expects to continue operating both facilities under existing management contracts with Immigration and Customs Enforcement (NYSE: ICE), though the terms may be modified to reflect the change in ownership. The management contract for the Prairie Correctional Facility expires in August 2031, while the Midwest Regional Reception Center contract expires in September 2027. The company noted that ICE retains the ability to terminate contracts for non-appropriation of funds or for convenience.

Following the sales, CoreCivic will own or control 61 correctional, detention, and reentry facilities with a total design capacity of approximately 67,000 beds, and manage an additional eight facilities it does not own with a total design capacity of 13,000 beds.

The company also disclosed it has begun preliminary discussions with ICE regarding the potential sale of additional facilities, adding that no assurance can be given that further transactions will occur.

CoreCivic President and CEO Patrick Swindle said the sales follow a similar transaction involving two detention centers in California the prior month, describing the deals as demonstrating "the value of the Company's underlying real estate portfolio."