BINGHAM FARMS, Mich., March 8 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced that it received a letter from Kensington Investment Group, Inc. on
March 3, 2000 requesting that the Malan board of directors increase the size
of the board from five directors to eight directors and appoint three
designees of Kensington to fill the new positions in order to "direct input
into the Board's current deliberations to enhance shareholder value."
On March 6, 2000, the Malan board of directors met to consider the request
of Kensington. At that meeting, the board decided that in view of the real
estate investment expertise of Kensington, it would welcome Kensington's input
into the process of considering alternatives to enhance shareholder value and
therefore proposed to increase the size of the board by one director and to
elect a designee of Kensington.
Kensington, the beneficial owner of approximately 9.6 percent of Malan's
outstanding common stock, has indicated in its Schedule 13D, dated March 7,
2000, that if Malan does not take appropriate steps to ensure Kensington's
representation on the board, Kensington will "consider what further actions,
if any, it will take. Such further actions could include the proposal and
solicitation of proxies in favor of a slate of candidates to stand for
election at the upcoming 2000 Annual Meeting of Shareholders of the Company in
opposition to the slate nominated by the Company's directors."
Prior to the filing of its Schedule 13D, Kensington informed Malan on
March 7, 2000 that it declined the board's offer of representation. In
response, Anthony S. Gramer, president and chief executive officer of Malan
Realty Investors, stated, "I am surprised by Kensington's rejection of the
company's offer to provide board representation because it would have met
their stated goal of providing input to our board. To the extent that
Kensington elects to proceed with an opposition slate, the board of directors
intends to vigorously fight to protect the interests of all shareholders and
to continue the exploration of strategic alternatives with the intent of
enhancing the value of all shareholders' investment in the company."
As has been previously announced, the Company has engaged Prudential
Securities Incorporated to advise the Company regarding a wide variety of
capital markets strategic alternatives to enhance shareholder value.
Malan Realty Investors, Inc. owns, acquires, redevelops and manages
properties that are leased primarily to national and regional retail
companies. The company owns a portfolio of 65 properties located in 9 states
that contains an aggregate of approximately 6.0 million square feet of GLA.
The company currently has 5.2 million common shares outstanding.
News releases for Malan Realty Investors are available through Company
News On-Call by fax at 800-758-5804, ext. 114165, or
http://www.prnewswire.com .
SOURCE Malan Realty Investors, Inc.
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CONTACT:
Michael K. Kaline, Vice President of Malan
Realty Investors, Inc., 248-644-7110; or Fred Nachman of
Corporate Technology Communications, Inc., 312-832-9300, ext.
202, for Malan Realty Investors, Inc.
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