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San Jose Water Co. parent invests in Texas

Silicon Valley/San Jose Business Journal - March 9, 2006

SJW Corp., the parent company of the San Jose Water Co., said in a regulatory filing this week that it has made two investments in Texas.

SJW is pushing its business operations outside the region to diversify its reliance on the regulated water business and on a single geography.

In its 2005 annual report filed with the U.S. Securities and Exchange Commission on March 7, the company reports buying a small water utility outside of Austin serving about 20,000 people and income-producing real property also in the state. The purchase price for the Canyon Lake Water Supply Corp. includes $3.2 million in cash payable at closing, plus SJW's assumption, retirement or recapitalization of about $20 million in debt.

SJW said that it used $4.2 million in gross proceeds from a Los Gatos property sale late last year to acquire the income-producing property in Texas for $4.69 million. The report did not give specifics about the property's type or location.

SJW already owns income-producing real estate in Connecticut and Florida, both of which it acquired in spring 2003 from the proceeds of property sales to the Santa Clara Valley Water district.

Locally, the company says it suffered a $141,000 drop in revenue in 2005 compared to 2004 because it had less income from parking fees due to the reduction in events at the HP Pavilion resulting from the National Hockey League lockout. The company retained commercial broker CB Richard Ellis in September to sell the eight acres on which the surface parking lots sit. It did not release any new information on that sale in the annual report.