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
NEW ENGLAND LIFE PENSION PROPERTIES III ;
A REAL ESTATE LIMITED PARTNERSHIP
(Exact name of registrant as specified in its charter)
Massachusetts
(State or Other Jurisdiction of Incorporation)
0-14052 04-2847256
(Commission File Number) (IRS Employer Identification No.)
225 Franklin Street, 25th Floor
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, New England Life Pension Properties III; A Real Estate
Limited Partnership (the "Partnership") sold its interest in Bayberry Associates
(the "Joint Venture"), a general partnership that owns real property located in
Frederick, Maryland, to an unaffiliated third party (the "Buyer"). The selling
price was determined by arm's length negotiations between the Joint Venture and
the Buyer. The property was sold for gross proceeds of $17,000,000. The
Partnership received net proceeds of approximately $16,985,000 and recognized a
gain of approximately $6,170,000.
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 NEW ENGLAND LIFE PENSION PROPERTIES III;
A REAL ESTATE LIMITED PARTNERSHIP
(Registrant)
By: Copley Properties Company III, Inc.
Managing General Partner
By: /s/ Wesley M. Gardiner, Jr.
---------------------------------
Name: Wesley M. Gardiner, Jr.
Title: President, Chief Executive
Officer and Director
New England Life Pension Properties III; 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
Property, Net $6,999,937 $6,999,937
Joint venture held for disposition 10,814,631 ($10,814,631)(a) 0
Cash and cash equivalents 2,942,647 16,985,000 (a) 19,927,647
------------ ------------- ------------
$20,757,215 $6,170,369 $26,927,584
============ ============= ============
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable $60,506 0 $60,506
Accrued management fee 45,655 0 45,655
------------ ------------- ------------
Total liabilities 106,161 0 106,161
------------ ------------- ------------
Partners' capital (deficit):
Limited partners ($485.54 per unit;
75,000 units authorized, 68,414
units issued and outstanding) 20,710,069 6,108,665 (a) 26,818,734
General partners (59,015) 61,704 (a) 2,689
------------ ------------- ------------
Total partners' capital 20,651,054 6,170,369 26,821,423
------------ ------------- ------------
$20,757,215 $6,170,369 $26,927,584
============ ============= ============
New England Life Pension Properties III; 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 $ 267,791 $ 267,791
Property operating expenses (79,665) (79,665)
Depreciation and amortization (121,979) (121,979)
---------- ----------- ----------
66,147 0 66,147
Joint venture earnings 1,551,569 (1,020,085)(b) 531,484
Amortization (9,464) 6,276 (b) (3,188)
---------- ----------- ----------
Total real estate operations 1,608,252 (1,013,809) 594,443
Gain on sale of property 0 6,170,369 (a) 6,170,369
---------- ----------- ----------
Total real estate activity 1,608,252 5,156,560 6,764,812
Interest on cash equivalents and short term investments 122,799 0 122,799
---------- ----------- ----------
Total investment activity 1,731,051 5,156,560 6,887,611
Portfolio Expenses
Management fee 182,620 (121,776)(e) 60,844
General and administrative 238,143 (5,000)(f) 233,143
---------- ----------- ----------
420,763 (126,776) 293,987
---------- ----------- ----------
Net income $1,310,288 $ 5,283,336 $6,593,624
========== =========== ==========
Net income per limited partnership unit $ 18.96 $ 76.45 (c) $ 95.41
========== =========== ==========
Number of limited partnership units
outstanding during the period 68,414 68,414 68,414
========== =========== ==========
New England Life Pension Properties III; 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 $ 647,947 $ 647,947
Property operating expenses (139,908) (139,908)
Depreciation and amortization (151,422) (151,422)
--------- ---------- ----------
356,617 0 356,617
Joint venture earnings 552,679 (552,679)(d) 0
Amortization (3,138) 3,138 (d) 0
Gain (loss) on sales of property 0 6,170,369 (a) 6,170,369
--------- ---------- ----------
Total real estate operations 906,158 5,620,828 6,526,986
Interest on cash equivalents and short term investments 66,110 0 66,110
--------- ---------- ----------
Total investment activity 972,268 5,620,828 6,593,096
Portfolio Expenses
Management fee 91,310 (68,042)(e) 23,268
General and administrative 108,288 0 108,288
--------- ---------- ----------
199,598 (68,042) 131,556
--------- ---------- ----------
Net income (loss) $ 772,670 $5,688,870 $6,461,540
========= ========== ==========
Net income (loss) per limited partnership unit $ 11.18 $ 82.32 (c) $ 93.50
========= ========== ==========
Number of limited partnership units
outstanding during the period 68,414 68,414 68,414
========= ========== ==========
Pro Forma Financial Statement Footnotes:
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(a) Disposition of asset as discussed in Item 2 herein and allocation of the
gain on such disposition to the Partners.
(b) Removal of 1997 operating activity related to the disposed asset discussed
in Item 2 herein.
(c) 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.
(d) Removal of 1998 year-to-date operating activity related to the disposed
asset discussed in Item 2 herein.
(e) Removal of management fees based on distributions received during the pro
forma period from the disposed asset discussed in Item 2 herein.
(f) Removal of appraisal fees incurred during the pro forma period for the
disposed asset discussed in Item 2 herein.