MuniMae Sells LIHTC Business

MuniMae Sells LIHTC Business BALTIMORE, MD - Municipal Mortgage & Equity, LLC today announced an agreement to sell substantially all of the low income housing tax credit (LIHTC) business operated by its subsidiaries MMA Equity Corporation and MMA Financial TC Corp.

MuniMae has agreed to sell the LIHTC assets of MMA Equity Corporation and MMA Financial TC Corp., other than its interests in certain guaranteed funds, to an affiliate of JEN Partners, LLC, a New York-based private equity real estate firm, for an aggregate consideration of approximately $30.7 million consisting of $18.7 million to be paid in cash and approximately $12 million in liabilities to be assumed by the purchaser. The sale is structured to occur in two separate closings. The first closing will cover at least thirty tax credit equity funds and the operating assets of the business, inclusive of employees, with a cash payment of at least $14 million plus the assumption of liabilities. The second closing will cover the remaining assets being transferred plus the balance of cash consideration. The sale is subject to certain purchase price adjustments as set forth in the purchase agreement. The Company will retain control of certain tax credit equity funds with respect to which the Company has guarantee obligations and will engage the purchaser to manage the funds.

MuniMae's LIHTC business aggregates, syndicates and manages portfolios of low income housing tax credit and assisted multi-family properties and manages the properties, assets related to the operation of the properties as well as the investment vehicles through which such properties are owned and operated.

Michael L. Falcone, Chief Executive Officer stated, "This sale is consistent with our previously announced initiatives and supports our strategy to become a smaller, more focused enterprise. We have no present intent to sell any other business lines, but we may continue to sell certain assets."

MuniMae and its subsidiaries arrange debt and equity financing for developers and owners of real estate projects. Assets under management as of May 31, 2009 exceeded $10.8 billion including investments in over 1,800 multifamily apartment properties, containing about 206,000 units, in 49 states, the District of Columbia, Puerto Rico and the U.S. Virgin Islands. MuniMae is organized as a limited liability company, which allows it to combine the limited liability, governance and management characteristics of a corporation with the pass-through tax features of a partnership. MuniMae also conducts activities through wholly owned taxable corporate subsidiaries.
Source: MuniMae

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