BINGHAM FARMS, Mich., July 15 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced that it has closed on the sales of six properties and
retired its $27 million Secured Convertible Notes.
The properties, located in Rockford, Illinois; Lawrence, Kansas;
Springfield and Cape Girardeau, Missouri; Clinton Township, Michigan; and
Marshfield, Wisconsin consist of 743,000 square feet of gross leasable area.
Proceeds of the sales, which generated $24.4 million after expenses, were used
to pay down $19.7 million of debt. The company anticipates using the balance
of the funds to pay down additional debt and for working capital purposes.
Malan also has another 10 properties under contract for sale and 22 under
letter of intent.
The nine-year $27 million 8.5% Convertible Notes, which were
collateralized by Bricktown Square in Chicago, were paid off using a
combination of existing working capital and the proceeds of a $20.5 million
bridge loan from UBS Real Estate Investments, Inc. The loan, which is also
secured by Bricktown Square, is for a period of two years and bears interest
at the rate of 350 basis points over LIBOR with a floor of 6.5%.
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 40 properties located in eight states that contains an
aggregate of approximately 3.6 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 disproportionate effect of changes in
proceeds from property sales on liquidating distributions due to the company's
capital structure, the cost of litigation in which the company is involved,
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 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.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
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