01—Abstract
Summary
Summary of the 8-K filed February 1, 2024. Cited figures are marked; the original filing is the authoritative source.
Super Micro Computer, Inc. entered into a Purchase and Sale Agreement dated January 26, 2024 with Caracol Property Owner LLC to acquire real estate in San Jose, California, comprising approximately 19.72 acres of land and 293,906 square feet of buildings and improvements, located close to the Company's headquarters space.
The aggregate purchase price is $80 milliona, subject to adjustments to be determined at closing, and the property is being acquired "as is." The Company has made a non-refundable deposit of $10 million (except in limited circumstances), and the transaction is currently expected to close in February 2024, subject to customary closing conditions. The filing states that the seller previously obtained, and the Company is acquiring, discretionary entitlements for potential redevelopment of the property with phased construction of seven office buildings totaling approximately 1.9 million square feet and two parking structures totaling approximately 1.6 million square feet. The Company currently leases a portion of the property for warehouse space.
The filing is a notice of a material definitive agreement under Item 1.01 and includes the purchase agreement as Exhibit 10.1. It contains forward-looking statements, notably regarding the expected closing date, and refers investors to the risk factors in the Company's Form 10-K for the fiscal year ended June 30, 2023.
02—Key points
Key Highlights
- Entered into a Purchase and Sale Agreement on January 26, 2024 with Caracol Property Owner LLC to buy real estate in San Jose, California.
- Aggregate purchase price of $80 million, subject to adjustments to be determined at closing; property acquired "as is."
- Company made a $10 million deposit, which is non-refundable except in limited circumstances.
- Property comprises approximately 19.72 acres of land and 293,906 square feet of buildings and improvements, near the Company's headquarters space.
- Transaction expected to close in February 2024, subject to customary closing conditions.
- Seller previously obtained discretionary entitlements for phased redevelopment: seven office buildings (about 1.9 million sq ft) and two parking structures (about 1.6 million sq ft).
- The Company currently leases a portion of the property for warehouse space.
03—Questions
Frequently Asked Questions
What is the Company acquiring and for how much?
The Company agreed to purchase approximately 19.72 acres of land and 293,906 square feet of buildings and improvements in San Jose, California, for an aggregate price of $80 million, subject to adjustments at closing.
How much has the Company already paid under the agreement?
The Company made a $10 million deposit under the Purchase Agreement, which is non-refundable except in limited circumstances.
When is the transaction expected to close?
The transaction is currently expected to close in February 2024, subject to customary closing conditions.
What redevelopment potential does the property have?
The seller previously obtained discretionary entitlements, which the Company is acquiring, for phased construction of seven office buildings totaling approximately 1.9 million square feet and two parking structures totaling approximately 1.6 million square feet.
How is the property currently used?
The Company currently leases a portion of the property for warehouse space.
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