The sale of the Birmingham-Southern College campus to Miles College has not proceeded as planned, following the expiration of the purchase agreement on a recent Monday afternoon.
Negotiations and Agreement
Negotiations between the two Alabama institutions regarding the acquisition of the 192-acre campus commenced in May, amidst Birmingham-Southern College’s ongoing financial challenges. An agreement was reached in September, with a designated closing date set for October 25. Although Miles College was granted an initial extension, a subsequent request to postpone the closing date to December 24 was denied.
Financial Obligations
Birmingham-Southern College noted that in order to meet its financial obligations to lenders and creditors, its Board of Trustees must expedite the sale of the campus property. In light of the event, Miles College expressed disappointment while reaffirming its intention to seek growth and expansion opportunities in the future.
Future Plans and Valuation
Birmingham-Southern College continues to operate as a corporate entity and is expected to formulate a plan regarding its endowment, which will require the approval of the state attorney general before any final sale can occur. The college’s physical property had a recent valuation of approximately $64.8 million.
Source: Higher Ed Dive.