CHICAGO, March 29 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) announced today that it has amended its purchase contract
with Denholtz Management Corporation dated January 8, 2001. Under the terms
of the amendment, the due diligence period granted to Denholtz, which was set
to expire on March 30, 2001, has been extended to April 9, 2001. In return,
Denholtz agreed to pay Banyan $250,000 if Denholtz terminates the purchase
contract prior to April 9th. Denholtz previously deposited $1.5 million in
escrow. Denholtz retains the absolute right to terminate the contract in its
sole discretion through April 9, 2001, subject to the $250,000 payment.
Banyan added that the parties contemplate a more substantive amendment
of the contract that would be completed by April 9, 2001. In particular,
Banyan explained that this second amendment would, among other things, likely:
(i) reduce the purchase price for the entire portfolio from $226 million to
$224 million; (ii) reduce the amount of additional earnest money that Denholtz
must deposit from $1.5 million to $750,000; (iii) extend the due date for
depositing this additional earnest money from the expiration of the due
diligence period to the earlier of April 30, 2001, or receipt of a firm
financing commitment from Denholtz; and (iv) extend the closing date, on
twenty-seven properties (contract price $185.25 million), from April 30, 2001
to June 1, 2001. Banyan explained that the parties will likely extend the
closing for University Square to December 19, 2001 and that it would have the
right to close the sale of Riverport and Northlake within 90 days of providing
written notice to Denholtz, but not later than April 9, 2002. The contract
price of the three assets excluded from the initial closing is $38.75 million.
Banyan added that it would likely retain the right to sell either or both of
Northlake or Riverport to a third party at any time, notwithstanding the
existing contract.
Banyan stated that the terms of the second amendment remain subject to
further negotiation and stressed that there is no assurance that the amendment
will be completed, or that the transaction will close.
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. Banyan's current portfolio consists
of properties totaling 3.5 million rentable square feet. As of this date
Banyan has 14,291,940 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 such as the closing of the Denholtz
transaction and other 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, 2000, filed
with the Securities and Exchange Commission on March 9, 2001. 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, 312-683-5539, or bhiggins@banyanreit.com , or Investor
Relations, L.G. Schafran, Chairman and Interim CEO-President,
312-683-5525, or ir@banyanreit.com , both of Banyan Strategic
Realty Trust
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