BINGHAM FARMS, Mich., April 29 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced it has completed the sale of three properties totaling
392,736 square feet. Net proceeds from the sales were $8.7 million.
Broadway Center, at 101 W. Lincoln Highway in Merrillville, Indiana is a
177,692 square-foot property anchored by Kmart. It was sold to Kmart. A
106,084 square-foot Kmart property at 151 E. Riverside Boulevard in Loves
Park, Illinois, was sold to an individual. A Topeka, Kansas property, located
at 240 E. 29th Street, houses a Harbor Freight Tools store and consists of
108,960 square feet of space. It was acquired by KDL, Inc.
Malan also announced it is calling the balance of its 9.5% Convertible
Subordinated Debentures due July 15, 2004 for redemption on June 1, 2004. The
Debentures will be redeemed at par, plus accrued but unpaid interest, and
retired. The aggregate principal balance of the Debentures is currently
$7.1 million.
"We are pleased to complete the redemption of the convertible subordinated
debentures well in advance of their due date," said Jeffery Lewis, chief
executive officer of Malan Realty Investors. "This is an important landmark
in our strategy to de-leverage the company and create liquidity for the
stockholders. Property sales are also progressing well, and we are pleased
with our progress to date and the prospects for selling additional properties
in the future."
The Debentures currently trade on the New York Stock Exchange under the
CUSIP number 561063-AA-6001. Prior to 5:00 p.m., Eastern Time, on June 1,
2004, holders of Debentures may convert their Debentures into shares of Malan
common stock at a price of $17.00 per share, or approximately 58.82 shares per
$1,000 principal amount of Debentures. Cash will be paid in lieu of
fractional shares. On April 29, 2004, the closing price of Malan common stock
on the New York Stock Exchange was $4.93 per share.
Holders of Debentures who do not convert their Debentures into Malan
common stock will have such Debentures redeemed on June 1, 2004. Upon
redemption, they will receive $1,035.89 per $1,000 principal amount of Notes
(consisting of the redemption price of $1,000 plus accrued and unpaid interest
thereon from January 15, 2004 up to but not including June 1, 2004 of $35.89).
No further interest will accrue thereafter on Debentures called for
redemption.
A notice of redemption is being mailed to all registered holders of the
Debentures. Copies of the notice of redemption may be obtained from The Bank
of New York, the paying agent and conversion agent, by calling Roxane
Ellwanger at (312) 827-8574. The address of The Bank of New York is 2 N.
LaSalle Street, Suite 1020, Chicago, Illinois 60602.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. In August 2002, the
company's shareholders approved a plan of complete liquidation. The company
owns a portfolio of 21 properties located in seven states that contains an
aggregate of approximately 1.5 million square feet of gross leasable area.
Safe Harbor Statement: This news release may contain forward-looking
statements. Although the company believes that the statements and projections
are based on reasonable assumptions, actual results may differ from those
projected. Key factors that could cause actual results to differ materially
include uncertainties regarding the length of time required to sell the
company's properties and execute its plan of liquidation and expenses incurred
during the liquidation period, changing market conditions affecting the sales
price of the company's properties, the effect of changes in proceeds from
property sales on liquidating distributions due to the company's capital
structure, bankruptcies and other financial difficulties of tenants, the cost
of addressing environmental concerns, unforeseen contingent liabilities, and
other risks associated with the commercial real estate business, as detailed
in the company's filings from time to time with the Securities and Exchange
Commission. Many of these factors are beyond the control of the company.
Malan does not undertake to update these forward-looking statements.
News releases for Malan Realty Investors are available on the company's
Web site at http://www.malanreit.com or in the Company News section on the PR
Newswire Web site at http://www.prnewswire.com .
SOURCE Malan Realty Investors, Inc.
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Related links:
http://www.malanreit.com
CONTACT:
John Roberson, Media Relations, of Malan
Realty Investors, Inc., +1-248-644-7110, or Fred Nachman of
Marjan Communications Inc., +1-312-867-1771
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