BINGHAM FARMS, Mich., July 22 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced it has completed the sale of Pine Ridge Plaza, a
250,533 square-foot shopping center in Lawrence, Kansas. The property, which
is anchored by Kmart, Kohl's and Old Navy, was acquired by Pine Ridge Plaza,
LLC of Shawnee Mission, Kansas for $13.85 million. Proceeds from the sale
will be used to repay debt.
Malan also announced it has reached an agreement modifying the terms of
sale for several Kmart-anchored shopping centers with Hutensky Capital
Partners, LLC of Hartford, Connecticut. The number of properties has been
reduced to four from eleven, and the purchase price has been adjusted to
$14.8 million from $42.0 million. The four properties -- Sherwood Plaza in
Springfield, Illinois; Kmart Plaza in Salina, Kansas; South City Center in
Wichita, Kansas; and Kmart Plaza in Jefferson City, Missouri -- consist of
467,685 square feet of gross leasable area. The company expects the
transaction will close on or about August 5, 2002.
During its due diligence process, the Hutensky group raised questions on
environmental issues at several of the remaining seven properties in the
original agreement involving residual contamination from underground storage
tanks removed from the properties several years ago or from solvents used by
dry cleaners. Malan is in the process of assessing the extent of
contamination, the potential costs of any required remediation and the
viability of indemnification from third parties.
"These properties remain attractive acquisition options, with most of them
located in the Chicago and Milwaukee areas," said Jeffrey Lewis, president and
chief executive officer of Malan Realty Investors. "Once we address and
resolve the impact of any environmental issues, we expect to find interest
from a number of parties as we re-market these properties."
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. The company owns a
portfolio of 56 properties located in nine states that contains an aggregate
of approximately 5.1 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 cost of litigation in which the company is involved,
the costs of liquidation, bankruptcies and other financial difficulties of
tenants, including the ultimate disposition of lease agreements with Kmart
Corporation, the cost of addressing environmental concerns, 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
Company News On-Call:
http://www.prnewswire.com/comp/114165.html
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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