BINGHAM FARMS, Mich., June 3 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), announced it has sold its Wood River, Illinois property and completed
the redemption of its convertible subordinated debentures.
Wood River Plaza, located at 1501 Vaughan Road, is a 147,470 square-foot
shopping center anchored by Wal-Mart. The purchaser of the property is
Woodriver Partners, LLC. Gross cash proceeds to Malan from the transaction
were approximately $5.9 million, which were used to pay down debt.
The company completed the redemption of its convertible subordinated
debentures on June 1, 2004. The final aggregate principal balance of its
9.5 percent Convertible Subordinated Debentures due July 15, 2004 was
$7.1 million. The convertible subordinated debentures were issued as part of
the company's initial public offering in 1994.
"We are pleased to complete the sale of this property and the final
redemption of the convertible subordinated debentures," said Jeffrey Lewis,
president and chief executive officer of Malan Realty Investors. "With this
sale and debt reduction, we have paid off approximately $110 million of
company debt over the last year."
Malan Realty Investors, Inc. is continuing to liquidate its assets and
currently expects that no later than August 28, 2004, any then remaining
assets and liabilities will be transferred to a liquidating trust. Each
shareholder of Malan will automatically become the holder of one unit of
beneficial interest in the trust for each share of Malan common stock, and all
outstanding shares of Malan common stock will automatically be deemed
cancelled. Malan Realty Investors will seek relief for the trust from
registering the units under Section 12(g) of the Securities Exchange Act of
1934, as amended, and its obligation to file periodic reports.
Subject to limited exceptions related to transfer by will, interstate
succession or operation of law, the units will not be transferable nor will a
unit holder have authority, opportunity or power to sell or in any other
manner dispose of any units. As a result, the beneficial interests in the
liquidating trust will not be listed on any securities exchange or quoted on
any automated quotation system of a registered securities association.
Shareholders who may need or wish liquidity with respect to their company
common stock before the liquidating trust makes liquidating distributions
should look into selling their shares while the common stock is still traded
on an established market.
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 20 properties located in seven states that contains an
aggregate of approximately 1.3 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,
+1-248-644-7110, or Fred Nachman of Marjan Communications Inc.,
+1-312-867-1771, both for Malan Realty Investors, Inc.
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