SAN DIEGO, Feb. 4 /PRNewswire-FirstCall/ -- Burnham Pacific Properties,
Inc. (NYSE: BPP) today announced that it has closed on the sale of three
properties and one leasehold to a joint venture led by affiliates of PO'B
Montgomery & Company and Apollo Real Estate Advisors (pursuant to their joint
venture known as Pacific Retail, L.P.) for an aggregate purchase price of
approximately $24.8 million in cash and the assumption of mortgage debt. This
sale represents the second transaction with the joint venture under a
previously announced Purchase and Sale Agreement, as amended, with Pacific
Retail, L.P., which contemplates the sale of the Company's interests in
fifteen properties. The first transaction, which closed in December 2001,
involved the sale of eight properties for an aggregate purchase price of
approximately $91.8 million. The remaining three properties targeted for sale
under the agreement have an aggregate purchase price of approximately
$32.3 million and are expected to close if and when the necessary applicable
ground lessor and lender approvals are received.
The Company's interest in the three properties totals approximately
208,790 square feet of gross leaseable area and include Ontario Village
Shopping Center in Ontario, California; the Village East center in Salem,
Oregon; and Fairwood Square in Renton, Washington. The leasehold contains
approximately 52,850 square feet of gross leaseable area and is located in the
James Village Center in Lynnwood, Washington.
The Company also announced that it will make a $0.45 per share liquidating
distribution on February 22, 2002 to stockholders of record as of the close of
business on February 14, 2002.
In addition, the Company announced that it has completed the transfer of
the 280,900 square foot Mountaingate Plaza, located in Simi Valley,
California, to its lender in full satisfaction of the Company's mortgage
obligation.
Burnham Pacific Properties, Inc. is a real estate investment trust (REIT)
that focuses on retail real estate. More information on Burnham may be
obtained by visiting the Company's web site at http://www.burnhampacific.com .
Wachovia Securities served as financial advisor and placement agent for
the joint venture led by affiliates of PO'B Montgomery & Company and Apollo
Real Estate Advisors. P.O'B. Montgomery & Company, based in Dallas, Texas, is
an owner, operator and developer of neighborhood and community shopping
centers, currently owning and operating approximately 2.5 million square feet
of shopping centers. Apollo Real Estate Advisors is a real estate investment
firm with extensive experience in all facets of real estate ownership,
development and management. Since its inception in 1993, Apollo through its
real estate investment funds has invested over $3.7 billion of equity in over
190 transaction with an aggregate purchase price of $9.5 billion. P.O'B.
Montgomery and Apollo currently jointly own and operate 18 shopping centers.
This news release contains forward-looking statements that predict or
indicate future events or trends or that do not relate to historical matters.
There are a number of important factors that could cause actual events to
differ materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, the following: we may be unable
to consummate the sale transactions described herein with respect to some or
all of the subject properties or the closing may be materially delayed; we may
be unsuccessful in implementing our liquidation strategy; we may not be able
to complete the liquidation in a timely manner or realize proceeds from the
sales of assets in amounts that will enable us to provide currently
anticipated liquidating distributions to our stockholders; and occupancy rates
and market rents may be adversely affected by economic and market conditions
which are beyond our control, including imbalances in supply and demand for
retail shopping center space and the financial condition of our tenants.
You should also read the risk factors that are discussed in the Company's
periodic reports filed with the Securities and Exchange Commission, including
the risk factors that were disclosed in our Form 10-K that was filed with the
SEC on April 3, 2001. You should be aware that the risk factors contained in
that Form 10-K may not be exhaustive. Therefore, we recommend that you read
the information in that Form 10-K together with other reports and documents
that we file with the SEC from time to time, including our Forms 10-K, 10-Q
and 8-K and Proxy Statements, which may supplement, modify, supersede or
update those risk factors.
SOURCE Burnham Pacific Properties, Inc.
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Related links:
http://www.burnhampacific.com
CONTACT:
Daniel B. Platt, Chief Financial Officer of
Burnham Pacific Properties, Inc., +1-619-652-4700, Fax,
+1-619-652-4711, dbplatt@bpac.com
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