As filed with the Securities and Exchange Commission on October 15, 2001
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SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(A) OF
THE SECURITIES AND EXCHANGE ACT OF 1934
Filed by the Registrant [X]
Filed by a Party other than the Registrant [_]
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[_] Preliminary Proxy Statement
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(as permitted by Rule 14a-6(e) (2))
[_] Definitive Proxy Statement
[X] Definitive Additional Materials
[_] Soliciting Material pursuant to Rule 14a-12
KRUPP REALTY LIMITED PARTNERSHIP - IV
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(Name of Registrant as Specified In Its Charter)
Not Applicable
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KRUPP REALTY LIMITED PARTNERSHIP-IV
One Beacon Street
Suite 1500
Boston, Massachusetts 02108
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October 15, 2001
Dear Investor Limited Partner:
You should have received a Proxy Statement of Krupp Realty
Limited Partnership-IV, which was mailed to the holders of the Partnership's
investor limited partnership units on October 12, 2001. The purpose of this
letter is to provide you with a summary of the information contained in the
Proxy Statement with respect to cash distributions payable to unitholders upon a
liquidation of the Partnership.
As more fully described below, and subject to the assumptions
and caveats described below, if the Partnership had sold all of its properties
owned as of June 30, 2001 and liquidated as of that date, the net assets in
liquidation available per investor limited partnership unit would have been
$883. This amount is in addition to the aggregate cash distributions of
approximately $517 per investor limited partnership unit that have been paid
since the inception of the Partnership through August 15, 2001.
The Partnership's Proxy Statement solicits the consent of its
unitholders to sell Walden Pond Apartments, one of the Partnership's properties.
The sale is subject to the approval by unitholders representing a majority of
the investor limited partnership units. Although no assurance can be given,
assuming that requisite approval is obtained, the Partnership expects the sale
of Walden Pond to occur on or about November 12, 2001. As described in the Proxy
Statement, the Partnership expects that unitholders will receive a cash
distribution in connection with the sale of Walden Pond in the amount of
approximately $218 to $223 per unit.
The Proxy Statement also describes the sale of Fenland Field
Apartments, which was consummated on August 1, 2001. In connection with that
sale, the Partnership made an initial distribution of approximately $282 per
unit, and expects to make one or more subsequent distributions aggregating not
less than approximately $15 per unit after the termination of a nine-month claim
period set forth in the contract with the Fenland Field buyer, assuming no
claims are made against the Partnership by the buyer.
The Proxy Statement also describes the proposed sale of
Pavillion Apartments, the last of the Partnership's properties. Although no
assurance can be given, the Partnership currently expects that transaction to
close on or about November 15, 2001. The amount of the cash distribution to be
made to unitholders in connection with that sale will depend upon a number of
factors, and cannot be determined at this time. However, if the sale had
occurred as of June 30, 2001, the net assets of the Partnership
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available for distribution to the investor limited partners on that date would
have been approximately $260 to $270 per unit. Unitholders should be aware that
this amount is not intended to represent the actual amount that will be
distributed in connection with the Pavillion sale.
In addition to the cash distributions described above, since
the inception of the Partnership through August 15, 2001, the Partnership has
made aggregate cash distributions of approximately $517 per unit.
As described in the Proxy Statement, if the Walden Pond sale
is approved and the sale occurs, and the Pavillion sale occurs, the Partnership
will be dissolved. The Proxy Statement contains an Unaudited Pro Forma
Consolidated Statement of Net Assets in Liquidation as of June 30, 2001 (the
"LIQUIDATION PRO FORMA STATEMENT"). Based on the Liquidation Pro Forma
Statement, including the assumptions set forth therein, if the sale of Fenland
Field, Pavillion and Walden Pond had occurred as of June 30, 2001, and the
Partnership were liquidated as of that date, the net assets in liquidation
available per investor limited partnership unit on that date would have been
$883. Unitholders should be aware that this amount is not intended to represent
the actual amount that will be distributed in connection with the sale of
Fenland Field, the proposed sales of Walden Pond and Pavillion, and the proposed
liquidation of the Partnership.
The valuation of the Partnership's assets and liabilities
necessarily requires estimates and assumptions by management. In addition, there
are substantial uncertainties in carrying out any liquidation plan. The actual
value of any liquidating distributions would depend upon a variety of factors
including, but not limited to, the actual proceeds from the sale of the
Partnership's assets, the ultimate settlement amounts of the Partnership's
liabilities and obligations, actual costs incurred in connection with carrying
out the liquidation, including costs of liquidation and establishing reserves,
and the actual time of the distributions. The value and liabilities ultimately
realized in any liquidation could differ from the amount described above and the
difference could be material. THERE CAN BE NO ASSURANCE THAT THE NET ASSETS IN
LIQUIDATION PER INVESTOR LIMITED PARTNERSHIP UNIT DESCRIBED ABOVE WILL BE
REALIZED IF THE PARTNERSHIP WERE TO BE LIQUIDATED.
If you have more questions about the transaction described in
the Proxy Statement, you should contact:
KRUPP FUNDS GROUP
One Beacon Street
Suite 1500
Boston, Massachusetts 02108
Attention: Investor Services
Phone: 1-800-25-KRUPP
(1-800-255-7877)
Fax: (617) 423-8919