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): August 7, 1998
COPLEY PENSION PROPERTIES VII; A REAL ESTATE LIMITED PARTNERSHIP
(Exact Name of Registrant as Specified in its Charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-17807 04-2988542
(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 August 7, 1998 Copley Pension Properties VII: A Real Estate Limited
Partnership (the "Partnership") sold its interest in Frederick Partners (the
"Joint Venture"), a general partnership that owns real property located in
Frederick, Maryland to an unaffiliated third party (the "Buyer") for gross
proceeds of $21,800,000. The terms of the sale were determined by arm's length
negotiation between the Buyer and the Joint Venture. The Partnership received
its 25% share of net proceeds of approximately $5,446,000 and recognized a gain
of approximately $1,958,000.
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 June 30, 1998 (Exhibit A). The pro forma
income statements are presented for the fiscal year ended December 31, 1997
(Exhibit B) and the period ended June 30, 1998 (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: August 20, 1998 COPLEY PENSION PROPERTIES VII;
A REAL ESTATE LIMITED PARTNERSHIP
(Registrant)
By: Seventh Copley Corp.
Managing General Partner
By: Wesley M. Gardiner, Jr.
--------------------------------
Name: Wesley M. Gardiner, Jr.
Title: President, Chief Executive
Officer and Director
Copley Pension Properties VII; EXHIBIT A
A Real Estate Limited Partnership
Pro Forma Balance Sheet
June 30, 1998
Unaudited
Pro Forma June 30, 1998
June 30, 1998 Adjustment Pro Forma
------------- ---------- -------------
ASSETS
Real estate investments:
Joint ventures $ 9,162,563 - $ 9,162,563
Property, net 10,758,427 - 10,758,427
----------- ---------- -----------
19,920,990 0 19,920,990
Joint venture held for disposition 3,324,410 (3,324,410) 0
Cash and cash equivalents 4,571,861 5,446,250 (a) 10,018,111
----------- ---------- -----------
$27,817,261 $2,121,840 $29,939,101
=========== ========== ===========
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $ 54,442 - $ 54,442
Accrued management fee 65,026 - 65,026
Deferred disposition fees 478,108 163,500 (b) 641,608
----------- ---------- -----------
Total liabilities 597,576 163,500 761,076
----------- ---------- -----------
Partners' capital (deficit):
Limited partners ($884 per unit;
160,000 units authorized, 42,076
units issued and outstanding) 27,261,836 1,938,757 (a) 29,200,593
General partners (42,151) 19,583 (a) (22,568)
----------- ---------- -----------
Total partners' capital 27,219,685 1,958,340 29,178,025
----------- ---------- -----------
$27,817,261 $2,121,840 $29,939,101
=========== ========== ===========
Copley Pension Properties VII; EXHIBIT B
A Real Estate Limited Partnership
Pro Forma Income Statement
December 31, 1997
Unaudited
Pro Forma December 31, 1997
December 31, 1997 Adjustment Pro Forma
----------------- ---------- -----------------
Investment Activity
Property rentals $1,900,041 $1,900,041
Property operating expenses (709,195) (709,195)
Depreciation and amortization (373,154) 3,624 (c) (369,530)
---------- ---------- ----------
817,692 3,624 821,316
Joint venture earnings 1,319,377 (288,129)(c) 1,031,248
---------- ---------- ----------
Total real estate operations 2,137,069 (284,505) 1,852,564
Gain on sale of property - 1,958,340 (a) 1,958,340
---------- ---------- ----------
Total real estate activity 2,137,069 1,673,835 3,810,904
Interest on cash equivalents and short term investments 233,776 - 233,776
---------- ---------- ----------
Total investment activity 2,370,845 1,673,835 4,044,680
Portfolio Expenses
Management fee 260,106 (37,860)(f) 222,246
General and administrative 168,543 (1,250)(g) 167,293
---------- ---------- ----------
428,649 (39,110) 389,539
---------- ---------- ----------
Net income $1,942,196 $1,712,945 $3,655,141
========== ========== ==========
Net income per limited partnership unit $ 45.70 $ 40.30 (d) $ 86.00
========== ========== ==========
Number of limited partnership units
outstanding during the period 42,076 42,076 42,076
========== ========== ==========
Copley Pension Properties VII; EXHIBIT C
A Real Estate Limited Partnership
Pro Forma Income Statement
June 30, 1998
Unaudited
Pro Forma June 30, 1998
June 30, 1998 Adjustment Pro Forma
------------- ---------- -------------
Investment Activity
Property rentals $ 971,151 $ 971,151
Property operating expenses (372,015) (372,015)
Depreciation and amortization (176,304) 1,812 (e) (174,492)
---------- ---------- ----------
422,832 1,812 424,644
Joint venture earnings 715,645 (180,599)(e) 535,046
---------- ---------- ----------
Total real estate operations 1,138,477 (178,787) 959,690
Gain on sale of property 0 1,958,340 (a) 1,958,340
---------- ---------- ----------
Total real estate activity 1,138,477 1,779,553 2,918,030
Interest on cash equivalents and
short term investments 115,705 - 115,705
---------- ---------- ----------
Total investment activity 1,254,182 1,779,553 3,033,735
Portfolio Expenses
Management fee 130,053 (21,910)(f) 108,143
General and administrative 89,265 - 89,265
---------- ---------- ----------
219,318 (21,910) 197,408
---------- ---------- ----------
Net income $1,034,864 $1,801,463 $2,836,327
========== ========== ==========
Net income per limited partnership unit $ 24.35 $ 42.39 (d) $ 66.74
========== ========== ==========
Number of limited partnership units
outstanding during the period 42,076 42,076 42,076
========== ========== ==========
Pro Forma Financial Statement Footnotes:
(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain on such disposition to the Partners.
(b) Disposition fee incurred in connection with the disposition of the asset
discussed in Item 2 herein.
(c) Removal of 1997 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 1998 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.