BINGHAM FARMS, Mich., Aug. 28 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), announced that shareholders approved a plan of complete liquidation of
the company at today's annual meeting.
The plan, which was approved by the board in July 2002, provides for the
orderly sale of assets for cash or such other form of consideration as may be
conveniently distributed to shareholders, payment of or establishing reserves
for the payment of liabilities and expenses, distribution of net proceeds of
the liquidation to common shareholders, and wind up of operations and
dissolution of the company. The board believes that net proceeds to
shareholders will range from $4.75 to $8.50 per share, dependent upon
successful execution of the plan.
The liquidation plan is expected to take up to 24 months to complete,
although it could take longer. The per-share range includes estimated
proceeds from the sale of properties, repayment of debt, income expected to be
earned from properties during the liquidation process and expenses including
selling costs and advisory fees. During 2002, Malan has sold six properties
totaling approximately 822,220 square feet of gross leasable area for a total
of $29.9 million before debt repayment.
The company also announced that Paul Gray, Jill Holup, John P. Kramer,
Jeffrey D. Lewis and Edward Russell III have been reelected to the board of
the directors. The board of directors has been reduced from seven to five, as
Edward T. Boutrous and Andrew Miller did not stand for reelection.
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
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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