Description

Heartland Partners, LP was spun out of Chicago Milwaukee Corp. At the time it contained various land holdings. Over the years -- under different management -- Heartland undertook an active development program. Some properties have been fully developed, some are in process and some various land odds and ins remain.

The opportunity is as follows:

Some of the long standing development projects are finally bearing fruit; and at the same time new management has the goal of selling all the assets -- as is -- (as they are now in various stages of development) and returning the money to partners through distributions / liquidation.

The partnership (thousands)
Cash and other assets $12,302
Land Held for Sale 25,952
Total liabilities 13,730
Partners' capital 24,514

Units 2.092,000
Partners Capital Per Unit $11.71
Current Price $ 7.20


Heartland currently has several properties under contract for sale that aggregate $24 million. They are very close to having the full book in cash. In addition, Heartland has other land assets that management intends to aggressively monetize. The most significant single piece is a property that adjoins Miller Field baseball stadium in Milwaukee. The Redevelopment Authority of the City of Milwaukee has stated it intends to acquire this property through eminent domain. The company would like to sell it but one way or another it will be sold.

Heartland also has reported some interest from third parties in acquiring the balance of the company's properties in bulk.

The opportunity is to buy what soon will be $11 to $12 of cash for $7 with further upside of several dollars (my estimate is $4 to $8 per unit) as the remaining properties are liquidated.

Catalyst

Closing of properties under contract
Distributions of Cash
Potential Sale of all remaining property
Liquidation