CHICAGO, Jan. 8 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) today announced that it has entered into a binding contract
with Denholtz Management Corporation. Denholtz Management Corporation
conducts business as Denholtz Associates. Under the terms of the contract,
Denholtz will acquire all of Banyan's real estate assets for a price of
$226 million. The contract includes a provision requiring Denholtz to pay all
prepayment penalties and assumption fees on Banyan's real estate debt.
The contract contains standard conditions to closing including a due
diligence period during which Denholtz may terminate the contract for any
reason without penalty. The due diligence period ends March 30, 2001. The
Closing is scheduled for April 30, 2001, unless extended in accordance with
the contract.
Banyan also announced that it has adopted a Plan of Liquidation pursuant
to which Banyan will be dissolved and the proceeds from the sale of its real
estate assets distributed to the holders of Banyan's beneficial interest.
Banyan's board anticipates making the first of at least two liquidating
distributions shortly after closing the Denholtz transaction. The final
distribution is expected to occur prior to the end of 2001. Banyan announced
that based on the purchase price of the assets being sold to Denholtz
(assuming no adjustments) reduced by the costs of paying or reserving for
Banyan's liabilities and the costs of liquidating and dissolving Banyan, it
expects to make total distributions to the holders equal to approximately
$6.20 per share.
The contract results from a marketing effort initiated in August of 2000
by CFC Advisory Services Limited Partnership, an affiliate of Chicago based
Cohen Financial. Cohen was retained by Banyan to provide financial advisory
services and ultimately to market the Trust or its assets for sale.
Denholtz Associates is a privately-held development, investment and
management company active in office, industrial, flex and retail real estate
in the United States. The company targets value-added real estate whereby its
substantial in-house resources and financial strength can capitalize on
opportunities that exist in the marketplace. Arthur Andersen LLP is acting as
financial advisor to Denholtz Associates.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that owns primarily office and flex/industrial properties. The
properties are located in certain major metropolitan areas of the Midwest and
Southeastern United States, including Atlanta, Georgia and Chicago, Illinois,
and smaller markets such as Huntsville, Alabama; Louisville, Kentucky;
Memphis, Tennessee; and Orlando, Florida. The Trust's current portfolio
consists of 27 properties totaling 3.5 million rentable square feet. As of
this date the Trust has 14,282,065 shares of beneficial interest outstanding.
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement of
which involve risks and uncertainties that are detailed from time to time in
our reports filed with the Securities and Exchange Commission, including the
report on Form 10-K for the year ended December 31, 1999 and in the
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" section which was included in our Form 10-Q for the quarter ended
September 30, 2000 which was filed with the Securities and Exchange Commission
on November 14, 2000. Without limitation the foregoing, words such as
"anticipates", "expects", "intends", "plans", and similar expressions are
intended to identify forward-looking statements.
See Banyan's Website at http://www.banyanreit.com .
For further information regarding Banyan free of charge via fax, dial
1-800-PRO-INFO and enter BSRTS .
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, Vice President, General
Counsel, Banyan Strategic Realty Trust, 312-683-5539, or
bhiggins@banyanreit.com, or Investor Relations, 312-683-3671, or
ir@banyanreit.com
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