BINGHAM FARMS, Mich., June 13 /PRNewswire-FirstCall/ --
Malan Realty Investors, Inc. (NYSE: MAL), a self-administered real estate
investment trust (REIT), announced it has signed contracts for the sale of 15
properties and is in negotiations for the sale of 17 additional properties.
The 15 properties under contract total approximately 2.1 million square
feet of gross leasable area and include a mix of shopping centers and single-
tenant properties. The properties are the Orchard-14 Shopping Center in
Farmington Hills, Michigan; Clinton Pointe Shopping Center in Clinton
Township, Michigan; Pine Ridge Plaza in Lawrence, Kansas; Bricktown Square in
Chicago and properties leased to Kmart in Chicago, Franklin Park, Lansing and
Springfield, Illinois; Merrillville, Indiana; Salina and Wichita, Kansas;
Jefferson City and Kansas City, Missouri; and Milwaukee and Hales Corner,
Wisconsin. Malan closed the sale of a Kmart-leased property in Janesville,
Wisconsin last month, with net proceeds of $1.1 million.
The contracts have scheduled closing dates within the next 90 days,
subject to due diligence by the acquirers. Net proceeds to the company are
estimated at approximately $94 million before debt repayment. Malan intends
to use these proceeds to retire debt including $57.9 million of securitized
mortgage debt encumbering 23 properties that matures in August 2002. To the
extent that the property sale closings do not occur by the maturity date, the
company said it will use bridge financing to retire the mortgage debt and
subsequently retire the bridge financing with the proceeds from the property
sales.
"We are also in negotiations for the sale of an additional 17 properties
anchored by Wal-Mart, including 13 centers in which the Wal-Mart is owned and
operated by independent third parties," said Jeffrey Lewis, president and
chief executive officer of Malan Realty Investors. "Projected proceeds from
the sale of these properties before debt repayment are approximately
$50 million.
"In order to keep shareholders informed throughout the property
liquidation process, we will announce future sales that are material to the
portfolio as soon as a contract is executed," said Lewis.
The company announced it will file its definitive proxy statement shortly
with the Securities and Exchange Commission (SEC) in connection with its
annual meeting of shareholders, tentatively scheduled for August 28, 2002 in
Birmingham, Michigan. Included in the items for shareholder approval is the
plan for the complete liquidation of the company. The proxy statement will
also contain an estimate of expected cash distributions from the liquidation
of the company on a per-share basis.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. The company owns a
portfolio of 57 properties located in nine states that contains an aggregate
of approximately 5.5 million square feet of gross leasable area.
Safe Harbor Statement: This news release contains 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, the impact of market conditions on the sales prices for
the company's properties, the cost of litigation in which the company is
involved, bankruptcies and other financial difficulties of tenants, including
the ultimate disposition of lease agreements with Kmart Corporation, 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 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.prnewswire.com
http://www.malanreit.com
CONTACT:
Elliott J. Broderick, Chief Financial Officer
of Malan Realty Investors, Inc., +1-248-644-7110, or Fred Nachman
of Marjan Communications Inc., +1-312-867-1771, for Malan Realty
Investors, Inc.
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