BINGHAM FARMS, Mich., July 20 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced it has filed its response to a lawsuit by Grand/Sakwa Acquisitions,
LLC regarding the planned redevelopment of up to 90 acres at the intersection
of Orchard Lake Road, Northwestern Highway and 14 Mile Road in Farmington
Hills, Michigan.
On June 27, 2001 Grand/Sakwa filed suit seeking a judicial declaration
that the Joint Development Agreement signed by Malan and Grand/Sakwa
concerning the redevelopment is unenforceable. Yesterday in the 6th Judicial
Circuit in the State of Michigan, Malan filed its answer to that claim denying
Grand/Sakwa's contentions. It also filed a counterclaim seeking specific
performance of the Joint Development Agreement, alleging breach of contract
and claiming a breach of duty by Grand/Sakwa to negotiate in good faith.
"We do not believe Grand/Sakwa's suit has merit and Malan has responded
accordingly," said William J. McKenna of Foley & Lardner, legal counsel to
Malan Realty Investors. "Malan has demonstrated its willingness to go forward
with this project by placing $9 million of its funds in escrow, which it had
received from refinancing one of its properties."
Malan Realty Investors, Inc. owns, acquires, redevelops and manages
properties that are leased primarily to national and regional retail
companies. The company owns a portfolio of 63 properties located in nine
states that contains an aggregate of approximately 5.9 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 litigation costs, development risks such as unanticipated costs,
economic downturns, bankruptcies and other financial difficulties of tenants,
and other risks associated with the commercial real estate business, and 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:
Michael K. Kaline, President of Malan Realty
Investors, Inc., +1-248-644-7110, or Fred Nachman of Marjan
Communications Inc., +1-312-867-1771
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