BINGHAM FARMS, Mich., Aug. 9 /PRNewswire-FirstCall/?--
Malan Realty Investors, Inc. (NYSE: MAL), a self-administered real estate
investment trust (REIT), today announced it has completed the sale of four
Kmart-anchored shopping centers for $14.8 million. The company also announced
that it had utilized a portion of the net proceeds, along with the net
proceeds from three separate loan transactions, to repay its $57.85 million
securitized mortgage (REMIC) loan in full.
The properties sold -- 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 balance of the funds from the sale will be utilized for
general working capital purposes and to further reduce the company's
outstanding debt obligations.
The loan transactions were completed with Salomon Brothers Realty Corp.,
JDI Loans LLC and Cohen Financial for $23 million, $13.5 million and
$9.1 million, respectively. All are short-term bridge loans of one year or
less, carry a weighted average interest rate of approximately 7.1 percent per
annum and are collateralized by 20 of the company's 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 52 properties located in nine states that contains an aggregate
of approximately 4.6 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
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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