SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): March 4, 1998
NEW ENGLAND LIFE PENSION PROPERTIES; A REAL ESTATE LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-11884 04-2774875
(Commission File Number) (IRS Employer Identification No.)
225 Franklin Street, Boston, MA 02110
(Address of principal executive offices) (Zip Code)
(617) 261-9000
Registrant's Telephone Number, Including Area Code
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Item 2. Acquisition or Disposition of Assets.
- ----------------------------------------------
On March 4, 1998, New England Life Pension Properties; A Real Estate
Limited Partnership (the "Partnership") sold the property known as Rivers
Corporate Park to an unaffiliated third party (the "Buyer") for total gross
proceeds of $6,375,000. The terms of the sale were determined by arms-length
negotiation between the Buyer and AEW Real Estate Advisors, Inc., on behalf of
the Partnership. The Partnership received net proceeds of approximately
$5,900,000, representing repayment for its ground lease and mortgage loan
investments and residual proceeds. The Partnership recognized a gain of
approximately $1,000,000.
Item 7. Financial Statements and Exhibits.
- -------------------------------------------
In connection with the disposition of the asset discussed in Item 2 above,
pro forma financial statements are presented below. The pro forma balance sheet
is presented for the period ended September 30, 1997 (Exhibit A). The pro forma
income statements are presented for the fiscal year ended December 31, 1996
(Exhibit B) and the period ended September 30, 1997 (Exhibit C).
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: March 19, 1998 NEW ENGLAND LIFE PENSION PROPERTIES;
A REAL ESTATE LIMITED PARTNERSHIP
(Registrant)
By: Copley Properties Company, Inc.
General Partner
By: Wesley M. Gardiner, Jr.
--------------------------------
Name: Wesley M. Gardiner, Jr.
Title: President
New England Life Pension Properties EXHIBIT A
A Real Estate Limited Partnership
Pro Forma Balance Sheet
September 30, 1997
Unaudited
Pro Forma September 30, 1997
September 30, 1997 Adjustment Pro Forma
------------------ ------------ ------------------
ASSETS
Real estate investments:
Ground leases and mortgage loans, net $4,761,213 (4,761,213)(a) $0
------------------ ------------ ------------------
4,761,213 (4,761,213) 0
Cash and cash equivalents 8,921,072 5,893,416 (a) 14,814,488
Short-term investments 1,485,152 1,485,152
Interest, rent and other receivables 2,643 2,643
------------------ ------------ ------------------
$15,170,080 1,132,203 $16,302,283
================== ============ ==================
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $44,834 - $44,834
Accrued management fee 32,368 - 32,368
Deferred disposition fees 868,855 95,625 (b) 964,480
------------------ ------------ ------------------
Total liabilities 946,057 95,625 1,041,682
------------------ ------------ ------------------
Partners' capital:
Limited partners ($360 per unit;
30,000 units authorized,
issued and outstanding) 14,160,097 1,026,212 (a) 15,186,309
General partners 63,926 10,366 (a) 74,292
------------------ ------------ ------------------
Total partners' capital 14,224,023 1,036,578 15,260,601
------------------ ------------ ------------------
$15,170,080 $1,132,203 $16,302,283
================== ============ ==================
New England Life Pension Properties EXHIBIT B
A Real Estate Limited Partnership
Pro Forma Income Statement
December 31, 1996
Unaudited
Pro Forma December 31, 1996
December 31, 1996 Adjustment Pro Forma
----------------- ----------- -----------------
Investment Activity
Property rentals $ 788,265 $ 788,265
Property operating expenses (343,067) (343,067)
Depreciation and amortization (234,316) (234,316)
----------------- ----------- -----------------
210,882 0 210,882
Ground rentals and interest on mortgage loans 800,210 (458,625)(c) 341,585
Provision for impaired mortgage loan (409,592) 400,000 (c) (9,592)
----------------- ----------- -----------------
Total real estate operations 601,500 (58,625) 542,875
Gain on sale of property 1,036,578 (a) 1,036,578
----------------- ----------- -----------------
Total real estate activity 601,500 977,953 1,579,453
Interest on cash equivalents and short term
investments 123,999 - 123,999
----------------- ----------- -----------------
Total investment activity 725,499 977,953 1,703,452
Portfolio Expenses
Management fee 86,044 (41,276)(f) 44,768
General and administrative 99,955 (3,400)(g) 96,555
----------------- ----------- -----------------
185,999 (44,676) 141,323
----------------- ----------- -----------------
Net income $539,500 $1,022,629 $1,562,129
================= =========== ================
Net income per limited partnership unit $17.80 $33.75 (d) $51.55
=========== =========== ================
Number of limited partnership units
outstanding during the period 30,000 30,000 30,000
=========== =========== ================
New England Life Pension Properties EXHIBIT C
A Real Estate Limited Partnership
Pro Forma Income Statement
September 30, 1997
Unaudited
Pro Forma September 30, 1997
September 30, 1997 Adjustment Pro Forma
------------------ ---------- ------------------
Investment Activity
Property rentals $ 742,326 $ 742,326
Property operating expenses (233,408) (233,408)
Depreciation and amortization (188,288) (188,288)
------------------ ---------- ------------------
320,630 0 320,630
Ground rentals and interest on mortgage
loans 429,127 (428,905)(e) 222
------------------ ---------- ------------------
Total real estate operations 749,757 (428,905) 320,852
Gain on sales of property 1,120,783 1,036,578 (a) 2,157,361
------------------ ---------- ------------------
Total real estate activity 1,870,540 607,673 2,478,213
Interest on cash equivalents and
short term investments 123,956 - 123,956
------------------ ---------- ------------------
Total investment activity 1,994,496 607,673 2,602,169
Portfolio Expenses
Management fee 32,368 (32,368)(f) 0
General and administrative 77,900 - 77,900
------------------ ---------- ------------------
110,268 (32,368) 77,900
------------------ ---------- ------------------
Net income $1,884,228 $640,041 $2,524,269
================== ========== ==================
Net income per limited partnership unit $62.18 $21.12 (d) $83.30
================== ========== ==================
Number of limited partnership units
outstanding during the period 30,000 30,000 30,000
================== ========== ==================
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain on such disposal to the Partners.
(b) Disposition fee incurred in connection with the disposition of the asset
discussed in Item 2 herein.
(c) Removal of 1996 operating activity related to the disposed asset discussed
in Item 2 herein.
(d) Calculation of net income per limited partnership unit after the removal
of operating activity and addition of the gain related to the disposed
asset discussed in Item 2 herein.
(e) Removal of 1997 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(f) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(g) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.