-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Hp8joy6jdddC9u02D+mOA2+7Yac7Ii1ITPtYP4STa7xZYE5FmZltKSCQ4b3KKr0b 21u6R5/LXLiQrg99Wvauzw== 0000950134-05-014588.txt : 20050802 0000950134-05-014588.hdr.sgml : 20050802 20050802161929 ACCESSION NUMBER: 0000950134-05-014588 CONFORMED SUBMISSION TYPE: SC 14D9/A PUBLIC DOCUMENT COUNT: 2 FILED AS OF DATE: 20050802 DATE AS OF CHANGE: 20050802 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES PARTNERS XII CENTRAL INDEX KEY: 0000720392 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953903623 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D9/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-50745 FILM NUMBER: 05992279 BUSINESS ADDRESS: STREET 1: 55 BEATTIE PLACE STREET 2: POST OFFICE BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 3037578101 MAIL ADDRESS: STREET 1: 55 BEATTIE PLACE STREET 2: POST OFFICE BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: ANGELES PARTNERS XII CENTRAL INDEX KEY: 0000720392 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE [6500] IRS NUMBER: 953903623 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 14D9/A BUSINESS ADDRESS: STREET 1: 55 BEATTIE PLACE STREET 2: POST OFFICE BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 BUSINESS PHONE: 3037578101 MAIL ADDRESS: STREET 1: 55 BEATTIE PLACE STREET 2: POST OFFICE BOX 1089 CITY: GREENVILLE STATE: SC ZIP: 29602 SC 14D9/A 1 d27501a1sc14d9za.txt AMENDMENT TO SCHEDULE 14D-9 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20547 ------------------------------ SCHEDULE 14D-9 (RULE 14d-101) SOLICITATION/RECOMMENDATION STATEMENT UNDER SECTION 14(d)(4) OF THE SECURITIES EXCHANGE ACT OF 1934 (Amendment No. 1) ANGELES PARTNERS XII - -------------------------------------------------------------------------------- (Name of Subject Company) ANGELES PARTNERS XII - -------------------------------------------------------------------------------- (Name of Person(s) Filing Statement) LIMITED PARTNERSHIP UNITS - -------------------------------------------------------------------------------- (Title of Class of Securities) NONE - -------------------------------------------------------------------------------- (CUSIP Number of Class of Securities) Martha L. Long Senior Vice President Apartment Investment and Management Company 55 Beattie Place Greenville, South Carolina 29601 (864) 239-1000 - -------------------------------------------------------------------------------- (Name, Address, and Telephone Number of Person Authorized to Receive Notices and Communications on Behalf of the Person(s) Filing Statement) [ ] Check the box if the filing relates solely to preliminary communications made before the commencement of a tender offer. SCHEDULE 14D-9 Angeles Partners XII, hereby amends and supplements its Solicitation/Recommendation Statement on Schedule 14D-9 (the "Statement"), initially filed with the Securities and Exchange Commission on July 15, 2005 with respect to a tender offer by MPF Income Fund 22, LLC, MPF-NY 2005, LLC, Moraga Gold, LLC, Sutter Opportunity Fund 3, LLC, MPF DeWaay Fund 2, LLC, MPF Flagship Fund 10, LLC, Mackenzie Patterson Special Fund 6, LLC, Mackenzie Patterson Special Fund 6-A, LLC, MPF Acquisition Co. 3, LLC, MPF Income Fund 21, LLC, MPF DeWaay Fund 3 LLC, MPF DeWaay Fund 4 LLC, MPF Flagship Fund 9 LLC, MPF DeWaay Premier Fund 2, LLC, MP Value Fund 8, LLC, MPF Special Fund 7, LLC, Mackenzie Patterson Special Fund 5, LLC, MP Income Fund 20, LLC, MP Value Fund 6, LLC, Mackenzie Patterson Fuller, Inc., and C.E. Patterson (collectively, the "Offerors"), to purchase limited partnership units ("Units") of Angeles Partners XII, at a price of $680 per Unit in cash. The offer to purchase Units is being made pursuant to an Offer to Purchase of the Offerors, dated July 1, 2005, and amended July 25, 2005. ITEM 3. PAST CONTACTS, TRANSACTIONS, NEGOTIATIONS AND AGREEMENTS. The disclosure set forth under Item 3 of the Statement is hereby amended in its entirety as follows: The Partnership has no employees and depends on the Managing General Partner and its affiliates for the management and administration of all Partnership activities. The Partnership Agreement provides for (i) certain payments to affiliates for services and (ii) reimbursement of certain expenses incurred by affiliates on behalf of the Partnership. Affiliates of the Managing General Partner receive 5% of gross receipts from all of the Partnership's properties as compensation for providing property management services. The Partnership incurred fees to such affiliates of approximately $903,000 for both years ended December 31, 2004 and 2003. Approximately $8,000 of these fees remain unpaid as of December 31, 2004. The Partnership Agreement provides for a fee equal to 7.5% of "net cash from operations," as defined in the Partnership Agreement to be paid to the Managing General Partner for executive and administrative management services. One half of this fee is to be accrued and not paid unless the limited partners have received distributions equal to a 5% cumulative annual return on their adjusted capital investment as defined in the Partnership Agreement. This return criteria has not been met. The fee was approximately $105,000 and $198,000 for the years ended December 31, 2004 and 2003, respectively. The balance payable to the Managing General Partner at December 31, 2004 was approximately $365,000. Of this amount, approximately $313,000 will remain accrued until the criteria for payment have been met. Affiliates of the Managing General Partner charged the Partnership reimbursement of accountable administrative expenses amounting to approximately $435,000 and $436,000 for the -2- years ended December 31, 2004 and 2003, respectively. A portion of these reimbursements for the years ended December 31, 2004 and 2003 are fees related to construction management services provided by an affiliate of the Managing General Partner of approximately $104,000 and $68,000, respectively. The construction management service fees are calculated based on a percentage of certain additions to investment properties. In addition to reimbursement for services to affiliates and pursuant to the limited partnership agreement, the Partnership reimbursed the Managing General Partner for services related to obtaining debt refinancing at a rate of 1% of the new mortgage balance, which was approximately $84,000 for Chambers Ridge Apartments, approximately $120,000 for Twin Lake Towers Apartments and approximately $122,000 for Hunters Glen IV Apartments during the year ended December 31, 2003. During the year ended December 31, 2003, the Managing General Partner advanced the Partnership approximately $240,000 to cover costs related to the refinancing of Twin Lake Towers mortgage. Interest was charged at prime plus 1%. Interest expense on this advance was approximately $1,000 for the year ended December 31, 2003. This advance and interest incurred were repaid during the year ended December 31, 2003 with the proceeds from the refinancing of Twin Lake Towers. There were no advances from the Managing General Partner during the year ended December 31, 2004. Pursuant to the Partnership Agreement, the Managing General Partner is entitled to receive a distribution equal to 3% of the aggregate disposition price of sold properties. The Partnership paid a distribution of $186,000 to the Managing General Partner related to the sale of Cooper Point Plaza in 1999. During 2001, the Partnership paid distributions of approximately $85,000 and $375,000 related to the sales of Briarwood and Gateway Gardens Apartments, respectively. These distributions are subordinate to the limited partners receiving their original capital contributions plus a cumulative preferred return of 6% per annum of their adjusted capital investment, as defined in the Partnership Agreement. If the limited partners have not received these returns when the Partnership terminates, the Managing General Partner will return these amounts to the Partnership. The Partnership insures its properties up to certain limits through coverage provided by AIMCO which is generally self-insured for a portion of losses and liabilities related to workers compensation, property casualty and vehicle liability. The Partnership insures its properties above the AIMCO limits through insurance policies obtained by AIMCO from insurers unaffiliated with the Managing General Partner. During the years ended December 31, 2004 and 2003, the Partnership was charged by AIMCO and its affiliates approximately $256,000 and $228,000, respectively, for insurance coverage and fees associated with policy claims administration. In addition to its indirect ownership of the general partner interests in the Partnership, AIMCO and its affiliates owned 33,132 Units representing 74.09% of the outstanding Units at December 31, 2004. A number of these Units were acquired pursuant to tender offers made by AIMCO or its affiliates. It is possible that AIMCO or its affiliates will acquire additional Units in exchange for cash or a combination of cash and units in AIMCO Properties, L.P., the operating -3- partnership of AIMCO, either through private purchases or tender offers. Pursuant to the Partnership Agreement, unitholders holding a majority of the Units are entitled to take action with respect to a variety of matters that include, but are not limited to, voting on certain amendments to the Partnership Agreement and voting to remove the Managing General Partner. As a result of its ownership of 74.09% of the outstanding Units, AIMCO and its affiliates are in a position to control all voting decisions with respect to the Partnership. Although the Managing General Partner owes fiduciary duties to the limited partners of the Partnership, the Managing General Partner also owes fiduciary duties to AIMCO as its sole stockholder. As a result, the duties of the Managing General Partner, as managing general partner, to the Partnership and its limited partners may come into conflict with the duties of the Managing General Partner to AIMCO as its sole stockholder. ITEM 4. SOLICITATION OR RECOMMENDATION. The information set forth in the Letter to the Unit Holders, dated as of August 2, 2005, a copy of which is attached hereto as Exhibit (a)(1), is incorporated herein by reference. ITEM 8. ADDITIONAL INFORMATION. The information set forth in the Letter to the Unit Holders, dated as of August 2, 2005, a copy of which is attached hereto as Exhibit (a)(1), is incorporated herein by reference. ITEM 9. EXHIBITS. (a)(1) Letter to the Unit Holders of the Partnership, dated August 2, 2005. SIGNATURE After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this amendment to the Statement is true, complete and correct. Dated: August 2, 2005 ANGELES PARTNERS XII By: Angeles Realty Corporation II ------------------------------------ (Managing General Partner) By: /s/ Martha L. Long ----------------------------------- Senior Vice President -4- EX-99.(A)(1) 2 d27501a1exv99wxayx1y.txt LETTER TO THE UNIT HOLDERS OF THE PARTNERSHIP Exhibit (a)(1) ANGELES PARTNERS XII C/O ANGELES REALTY CORPORATION II 55 Beattie Place, P.O. Box 1089 Greenville, South Carolina 29602 August 2, 2005 Dear Limited Partner: As you may be aware by now, MPF Income Fund 22, LLC, MPF-NY 2005, LLC, Moraga Gold, LLC, Sutter Opportunity Fund 3, LLC, MPF DeWaay Fund 2, LLC, MPF Flagship Fund 10, LLC, Mackenzie Patterson Special Fund 6, LLC, Mackenzie Patterson Special Fund 6-A, LLC, MPF Acquisition Co. 3, LLC, MPF Income Fund 21, LLC, MPF DeWaay Fund 3 LLC, MPF DeWaay Fund 4 LLC, MPF Flagship Fund 9 LLC, MPF DeWaay Premier Fund 2, LLC, MP Value Fund 8, LLC, MPF Special Fund 7, LLC, Mackenzie Patterson Special Fund 5, LLC, MP Income Fund 20, LLC, and MP Value Fund 6, LLC, (collectively, the "MacKenzie Group") initiated an unsolicited tender offer to buy units of limited partnership interest ("Units") in Angeles Partners XII (the "Partnership") on July 1, 2005. The MacKenzie Group amended their tender offer for Partnership Units on July 25, 2005, in order to (i) extend the term of their tender offer to August 25, 2005, and (ii) increase the offer price from $620.00 per Unit to $680.00 per Unit. The Partnership, through its managing general partner, Angeles Realty Corporation II, is required by the rules of the Securities and Exchange Commission to make a recommendation whether you should accept or reject this offer or to state that the Partnership is remaining neutral with respect to this offer. The managing general partner does not express any opinion, and is remaining neutral, with respect to the MacKenzie Group's offer, because the managing general partner does not have a reliable indicator of the fair value of the Units. From time to time the managing general partner receives appraisals on some or all of the Partnership's properties, the most recent of which are described in the fourth bullet point below. The Partnership notes that such appraisals are important to the analysis of the value of the Units; however, a full analysis of the value of the Units would also require consideration of a number of other factors (e.g., operating expenses, management expenses, etc.) and the Partnership has not recently conducted an analysis of the value of its Units. The Partnership notes that the MacKenzie Group estimates the liquidation value of the Partnership to be approximately $713.00 per Unit. The managing general partner is of the opinion that secondary market sales information is not a reliable measure of value in this instance because of the small number of reported trades. IN LIGHT OF THE FOREGOING, THE MANAGING GENERAL PARTNER IS REMAINING NEUTRAL AND DOES NOT EXPRESS ANY OPINION WITH RESPECT TO THE MACKENZIE GROUP OFFER. However, we call your attention to the following considerations: o Both the managing general partner, Angeles Realty Corporation II, and the non-managing general partner, AIMCO Angeles GP, LLC are affiliates of AIMCO Properties, LP, a Delaware limited partnership, and Apartment Investment and Management Company ("AIMCO"), a Maryland corporation. In addition, Martha L. Long is Senior Vice President of the Managing General Partner, a position equivalent of the Chief Executive Officer of the Partnership, and Senior Vice President of AIMCO. We encourage you to read the information set forth under "Item 3. Past Contacts, Transactions, Negotiations and Agreements" of the Schedule 14D-9, which has been filed by the Partnership on the date hereof, a copy of which is enclosed herewith, and is incorporated herein by reference. o On March 31, 2005, the Partnership, through one of its operating partnerships, sold the Chambers Ridge Apartments, a 324-unit apartment complex located in Harrisburg, Pennsylvania, to a third party. The purchaser paid a purchase price of $14,450,000. In May 2005, the majority of the sale proceeds were distributed at $111.60 per Unit. The managing general partner expects that the balance of the sale proceeds will be distributed at $27.00 per Unit, although the timing of the distribution has not yet been determined. The MacKenzie Group's offer states that the $680.00 per Unit offer price will be reduced by the amount of any distributions declared or made after July 1, 2005. Accordingly, the managing general partner anticipates that the offer price of the MacKenzie offer will be reduced. o On April 29, 2005, the Partnership obtained mortgage financing on Pickwick Place Apartments, a 336-unit apartment complex located in Indianapolis, Indiana. The principal amount of financing was approximately $9,432,000. In May 2005, all of the proceeds from the refinancing were distributed at $78.37 per Unit. o In connection with ongoing litigation, the Partnership obtained appraisals of Hunters Glen Apartments IV, Hunters Glen Apartments V, Hunters Glen Apartments VI, Pickwick Place Apartments and Twin Lake Towers Apartments. In an appraisal report dated July 16, 2003, a third party appraiser concluded that the market value of Hunters Glen Apartments IV, a 264-Unit apartment complex located in Plainsboro, New Jersey, was $21,000,000 as of June 3, 2003. In an appraisal report dated July 16, 2003, a third party appraiser concluded that the market value of Hunters Glen Apartments V, a 304-Unit apartment complex located in Plainsboro, New Jersey, was $25,000,000 as of June 3, 2003. In an appraisal report dated July 16, 2003, a third party appraiser concluded that the market value of Hunters Glen Apartments VI, a 328-Unit apartment complex located in Plainsboro, New Jersey, was $27,000,000 as of June 3, 2003. In an appraisal report dated June 27, 2003, a third party appraiser concluded that the market value of Pickwick Place Apartments, a 336-Unit apartment complex located in Indianapolis, Indiana, was $14,800,000 as of May 7, 2003. In an appraisal report dated June 28, 2003, a third party appraiser concluded that the market value of Twin Lake Towers Apartments, a 399-Unit apartment complex located in Westmont, Illinois, was $25,700,000 as of May 28, 2003. In connection with previously contemplated financings of Hunters Glen Apartments IV, Hunters Glen Apartments V, Hunters Glen Apartments VI, Pickwick Place Apartments, and Twin Lake Towers Apartments, potential lenders obtained appraisals of the properties, copies of which have been obtained by the Partnership. In an appraisal report dated March 31, 2005, a third party appraiser concluded that the market value of Pickwick Place Apartments, a 336-Unit apartment complex located in Indianapolis, Indiana, was $14,510,000 as of March 18, 2005. In an appraisal report dated May 16, 2003, a third party appraiser concluded that the market value of Hunters Glen Apartments IV, a 264-Unit apartment complex located in Plainsboro, New Jersey, was $20,700,000 as of April 28, 2003. In an appraisal report dated July 29, 2005, a third party appraiser concluded that the combined market value of Hunters Glen Apartments V and Hunters Glen Apartments VI, a 304-Unit apartment complex and a 328-Unit apartment complex respectively, which are located in Plainsboro, New Jersey, was $52,900,000 as of November 1, 2001. In an appraisal report dated May 28, 2003, a third party appraiser concluded that the market value of Twin Lake Towers Apartments, a 399-Unit apartment complex located in Westmont, Illinois, was $22,600,000 as of May 19, 2003. -2- o The MacKenzie Group's offer to purchase estimates the liquidation value of the Partnership to be $713.00 per Unit. However, the MacKenzie Group is only offering $680.00 Per Unit. o While the Managing General Partner previously indicated to the Limited Partners that an increase in the MacKenzie's Group's ownership of Units as a result of the MacKenzie Group's offer may affect the outcome of Partnership decisions; after further analysis, since 74.40% of the outstanding Unites are owned by AIMCO Properties L.P. ("AIMCO Properties") and its affiliates, none of whom intend to tender any of their Units in the MacKenzie Group's offer, the purchase of the limited partners' Units by the MacKenzie Group will not materially affect the limited partners' ability to make decisions for the Partnership. o AIMCO Properties and its affiliates, which collectively hold 33,272 Units, or approximately 74.40% of the outstanding Units, do not intend to tender any of their Units in the MacKenzie Group's offer. o The MacKenzie Group's offer is limited to 6,716 Units. If more than 6,716 Units are tendered in response to their offer, the MacKenzie Group will accept the Units on a pro rata basis. Therefore, an investor that tenders all of its Units might not fully dispose of its investment in the Partnership. Section 9.1 of the Limited Partnership Agreement of the Partnership prohibits the transfer of fractional units of limited partnership interest. o The MacKenzie Group's offer to purchase provides limited past sale price information with which to compare their offer price. The Direct Investment Spectrum has reported high and low sales prices of $705.00 and $420.00 per Unit, respectively for the period from December 2001 through May 2004. The Direct Investment Spectrum has reported no sales from June 2004 through March 2005. The American Partnership Board has reported no sales from October 2002 through June 2005. AIMCO Properties completed a tender offer on December 28, 2004 in which it acquired 1,909 Units at price of $806.31 per Unit. AIMCO Properties completed a tender offer on December 30, 2003 in which it acquired 292 Units at a price of $364.17 per Unit. AIMCO Properties completed a tender offer on June 25, 2002 in which it acquired 506 Units at a price of $471.00 per Unit. AIMCO Properties purchased 10 Units in a private purchase on June 25, 2002 at a price of $471.00 per Unit. o The Partnership distributed to the limited partners $13.55 per Unit in the three-month period ended March 31, 2005, $34.68 per Unit in the year ended December 31, 2004 and $253.70 per Unit in the year ended December 31, 2003. Each limited partner should make its own decision as to whether or not it should tender or refrain from tendering its Units in an offer in light of its unique circumstances, including (i) its investment objectives, (ii) its financial circumstances including the tolerance for risk and need for liquidity, (iii) its views as to the Partnership's prospects and outlook, (iv) its own analysis and review of all publicly available information about the Partnership, (v) other financial opportunities available to it, (vi) its own tax position and tax consequences, and (vii) other factors that the limited partner may deem relevant to its decision. Under any circumstances, limited partners should be aware that a sale of their Units in the Partnership will have tax consequences that could be adverse. -3- PLEASE CONSULT WITH YOUR TAX ADVISOR ABOUT THE IMPACT OF A SALE ON YOUR OWN PARTICULAR SITUATION AND THE EFFECT OF ANY NEGATIVE CAPITAL ACCOUNTS. If you need further information about your options, please contact Martha Long at AIMCO Properties at (864) 239-1000. You can also contact The Altman Group, Inc., 1275 Valley Brook Avenue, Lyndhurst, New Jersey 07071, and its toll free telephone number is (800) 217-9608. The facsimile number of The Altman Group, Inc. is (201) 460-0050. Sincerely, Angeles Realty Corporation II Managing General Partner Enclosure -4- -----END PRIVACY-ENHANCED MESSAGE-----