BINGHAM FARMS, Mich., March 22 /PRNewswire/ -- Malan Realty Investors,
Inc. (NYSE: MAL), a self-administered real estate investment trust (REIT),
today announced it has entered into a joint development agreement with
Grand/Sakwa Acquisitions, LLC for the redevelopment of up to 90 acres of
property in Farmington Hills, Michigan. The redevelopment project, located at
the intersection of Orchard Lake Road, Northwestern Highway and 14 Mile Road,
will be constructed pursuant to a Planned Unit Development (PUD) agreement
approved by the City of Farmington Hills on March 19, 2001.
"We are pleased and excited to co-develop a project of this magnitude with
a high-quality and respected company like Grand/Sakwa," said Malan Realty
Investors President Michael K. Kaline. "This is one of the premier sites for
commercial and retail development in Oakland County, and all of us are looking
forward to beginning construction. The City of Farmington Hills has been very
helpful throughout the PUD approval process and should be commended for its
vision regarding this property."
"This investment in an important redevelopment opportunity constitutes an
important part of our new strategic plan announced last week," said Malan CEO
Jeff Lewis. "In the future, Malan will manage its portfolio more aggressively
in order to enhance shareholder value."
Phase I of the project is expected to contain up to 370,000 square feet of
retail space on 39 acres on the eastern portion of the property. Construction
for Phase I should begin this summer, and the opening is scheduled for spring
2002. Malan will manage the property upon completion.
Future phases of the redevelopment project will encompass Malan's existing
12-acre site, which currently contains the Orchard-14 Shopping Center that
fronts on Orchard Lake Road, Kaline said. The project plans to include
additional commercial and mixed-use buildings situated on as much as 50 acres
of property. The mixed-use structures would be multi-story in nature and
contain street-level retail space and a mix of office and residential units on
the floors above.
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 64 properties located in nine
states that contains an aggregate of approximately 5.9 million square feet of
gross leasable area.
Grand/Sakwa Acquisitions, LLC is a subsidiary of Grand/Sakwa Properties,
Inc., a real-estate development company headquartered in Farmington Hills,
Michigan.
Safe Harbor Statement: Certain statements in this release regarding
anticipated operating results are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Although the
company believes the statements and projections are based upon reasonable
assumptions, actual results may differ from those projected. Key factors that
could cause actual results to differ materially include the risk that
construction costs exceed original estimates, delays in constructions, the
risk that occupancy rates and rents at a development project will not be
sufficient to make the project profitable, economic downturns, bankruptcies
and other financial difficulties of tenants, and other risks associated with
the commercial real estate business, and as detailed in the company's filings
from time to time with the Securities and Exchange Commission.
News releases for Malan Realty Investors are available on the company's
web site at http://www.malanreit.com or 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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Related links:
http://www.malanreit.com
CONTACT:
Michael K. Kaline, President of Malan Realty
Investors, Inc., 248-644-7110; or Fred Nachman of Marjan
Communications Inc. for Malan Realty Investors, Inc.,
312-867-1771
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