Plymouth Meeting, Pa., April 26, 2019 (GLOBE NEWSWIRE) -- AMREP Corporation (NYSE: AXR) today reported that it has sold its Fulfillment Services business operated by Palm Coast Data to Studio Membership Services, LLC, a subsidiary of Irish Studio LLC. The closing of the sale occurred on April 26, 2019.

The buyer paid the Company $1.0 million in cash on the closing and entered into two long-term triple net leases as tenant for the Company’s owned facilities in Palm Coast, Florida, which facilities aggregate approximately 204,000 square feet. The aggregate annual base rent for the ten year leases starts at $1.9 million in the first year, subject to a one-month waiver of base rent during the first year, and escalates to $2.5 million in the tenth year. Prior to the sale, Palm Coast Data distributed to the Company $3.1 million of cash during the fourth quarter of fiscal year 2019, which ends on April 30, 2019.

“With the sale of the magazine subscription fulfillment business, AMREP has completed its exit from the media services business. We are now focused squarely on our real estate business to drive shareholder value,” said Edward B. Cloues, II, Chairman of the Company. “The cash we receive in connection with the transaction, including under the two leases, will help grow that business over the next several years.”

Additional details on the sale transaction are provided in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on April 26, 2019.

About AMREP – AMREP Corporation, through its subsidiaries, is a major holder of land and leading developer of real estate in New Mexico.