CHICAGO, April 9 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) announced today that it has executed a Second Amendment to
the previously announced contract with Denholtz Management Corporation for the
sale of all of Banyan's real estate assets. The amendment clarifies that the
purchaser's initial earnest money of $1.5 million is now non-refundable and
schedules the closing date for all but three properties on May 11, 2001, with
an automatic extension to as late as June 11, 2001, if various lender
requirements cannot be met by the earlier date. Banyan expects to receive
$185.5 million in gross proceeds on the first closing date.
Of the three remaining properties, Banyan is permitted to sell both its
Riverport Property in Louisville, Kentucky and its Northlake Festival Shopping
Center in Atlanta, Georgia to third parties or it may elect to "put" these
properties to Denholtz at agreed upon prices any time between the first
closing and January of 2002. The final property, University Square in
Huntsville, Alabama, remains subject to the contract of sale with Denholtz.
The closing for this property is scheduled for December 19, 2001.
If Denholtz ultimately purchases the entire Banyan portfolio, Banyan
anticipates gross proceeds of $224 million, reflecting a $2 million discount
from the purchase price agreed to on January 8, 2001.
The amendment executed on April 9, 2001, further provides that the
purchaser's non-refundable earnest money deposit of $1,500,000 will be
increased to $2,250,000 on the date Denholtz receives a firm commitment for
financing, but not later than April 30, 2001. Following the first closing,
the sum of $1 million will remain in escrow to secure Denholtz' performance
under the deferred closings.
Banyan's interim president and CEO, Larry Schafran, commenting on the
Denholtz transaction, stated: "We are very pleased that we have concluded the
negotiations over this amendment in an expeditious manner. We view the
commitment of Denholtz, as evidenced by the substantial non-refundable earnest
money deposit, as being solid. We are looking forward to the initial and
subsequent closings."
Banyan also announced that in order to avoid additional expenses and
duplication of effort, the first quarter distribution to shareholders will be
combined with the initial distribution of sale proceeds following the closing.
Banyan explained that it has revised its forecast for liquidating
distributions based on the revised closing schedule. The Trust expects to
distribute a total of $6.00-$6.10 per share from the liquidation of the Trust.
The initial distribution, which is currently expected to occur within thirty
days of the first closing, is anticipated to be approximately $5.00 per share
inclusive of the first quarter distribution. The balance of the funds is
currently expected to be distributed during the first quarter of 2002.
Because of Banyan's previous adoption of a Plan of Termination and
Liquidation, these distributions are treated for income tax purposes as a
return of capital to the extent of each shareholder's basis in his or her
stock.
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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