SAN DIEGO, Aug. 30 /PRNewswire/ -- Burnham Pacific Properties, Inc.
(NYSE: BPP) today announced that it has signed an agreement for the sale of
eighteen properties to Pacific Retail, L.P. for $158,470,000 in cash. The
transaction is being effected in furtherance of Burnham's Plan of Complete
Liquidation and Dissolution which was approved by Burnham's stockholders on
December 15, 2000. Under the terms of the agreement, the sale of each of the
properties is subject to customary conditions, including lender consents and
estoppels. Pacific Retail may terminate the agreement as to specific
properties at any time on or before October 15, 2001, if certain conditions
are not satisfied, subject to forfeiture of an allocable portion of a
$2.5 million earnest money deposit which was paid to Burnham at the time the
agreement was signed. The closing of the proposed sales is expected to occur
on or about October 31, 2001, but may be extended under certain circumstances.
In connection with the transaction, Burnham received an opinion from Houlihan
Lokey Howard & Zukin, a national investment banking firm, stating that the
consideration to be received by the Company in the proposed sale is fair to
Burnham from a financial point of view.
The eighteen properties to be sold include Burnham's interests in: Bell
Gardens Marketplace, Fremont Hub, Gateway Center, Ladera Center, Margarita
Plaza, Mission Plaza, Ontario Village, Palms to Pines and Plaza de Monterey in
California; Fairwood Square, Greentree Plaza, James Village and Park Manor in
Washington; Farmington Village and Village East Shopping Center in Oregon;
Silver Plaza and Cruces Norte in New Mexico; and Brickyard Plaza in Utah. On
a combined basis, Burnham's interests in such properties total approximately
1,725,000 square feet.
Proceeds from the sales contemplated by the agreement will be used to
repay indebtedness and to make liquidating distributions. The Company
previously announced that it intends to make one liquidating distribution per
quarter out of available cash, after payment of certain indebtedness and the
establishment of reserves; however, in general, no distribution would be made
unless the amount of such distribution would equal at least $0.25 per share.
Burnham Pacific Properties, Inc. is a real estate investment trust (REIT)
that focuses on retail real estate. More information on Burnham may be
obtained by visiting the Company's web site at http://www.burnhampacific.com.
Pacific Retail, L.P. is owned by affiliates of P. O'B. Montgomery &
Company and Apollo Real Estate Advisors. P. O'B. Montgomery & Company, based
in Dallas, Texas, is an owner, operator and developer of neighborhood and
community shopping centers, currently owning and operating approximately
2.5 million square feet of shopping centers. Apollo Real Estate Advisors is a
real estate investment firm with extensive experience in all facets of real
estate ownership, development and management. Since its inception in 1993,
Apollo through its real estate investment funds has invested over $3.7 billion
of equity in over 190 transaction with an aggregate purchase price of
$9.5 billion. P. O'B. Montgomery and Apollo currently jointly own and operate
18 shopping centers. The agreement between Burnham and Pacific Retail
provides that Pacific Retail will assign the agreement before closing to a
venture expected to include P. O'B. Montgomery, Apollo and GE Capital
Corporation.
This news release contains forward-looking statements that predict or
indicate future events or trends or that do not relate to historical matters.
There are a number of important factors that could cause actual events to
differ materially from those indicated by such forward-looking statements.
These factors include, but are not limited to, the following: we may be unable
to consummate the sale transaction described herein with respect to some or
all of the subject properties or such closing may be materially delayed; we
may be unsuccessful in implementing our liquidation strategy; we may not be
able to complete the liquidation in a timely manner or realize proceeds from
the sales of assets in amounts that will enable us to provide currently
anticipated liquidating distributions to our stockholders; we have outstanding
indebtedness maturing at various times during 2001, and we may be unable to
repay, refinance, replace or extend any or all of this indebtedness on terms
that are favorable to the Company, or at all; and occupancy rates and market
rents may be adversely affected by economic and market conditions which are
beyond our control, including imbalances in supply and demand for retail
shopping center space and the financial condition of our tenants.
You should also read the risk factors that are discussed in the Company's
periodic reports filed with the Securities and Exchange Commission, including
the risk factors that were disclosed in our Form 10-K that was filed with the
SEC on April 3, 2001. You should be aware that the risk factors contained in
that Form 10-K may not be exhaustive. Therefore, we recommend that you read
the information in that Form 10-K together with other reports and documents
that we file with the SEC from time to time, including our Forms 10-K, 10-Q
and 8-K and Proxy Statements, which may supplement, modify, supersede or
update those risk factors.
For further information, please contact Daniel B. Platt, Chief Financial
Officer of Burnham Pacific Properties, Inc., +1-619-652-4700 or fax,
+1-619-652-4711, dbplatt@bpac.com.
SOURCE Burnham Pacific Properties, Inc.
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Related links:
http://www.burnhampacific.com
CONTACT:
Daniel B. Platt, Chief Financial Officer of
Burnham Pacific Properties, Inc., +1-619-652-4700 or fax,
+1-619-652-4711, dbplatt@bpac.com
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