OAK BROOK, Ill., Sept. 25 /PRNewswire-FirstCall/ -- Banyan Strategic
Realty Trust (OTC Bulletin Board: BSRTS) announced today that it has entered
into an amendment with the proposed purchaser of Banyan's ground lease
interest in the Northlake Tower Festival Mall (suburban Atlanta, Georgia),
extending the closing date from September 24, 2002 to September 30, 2002. The
extension was necessitated by, among other things, the fact that the purchaser
had not yet obtained all of the approvals of the required rating agencies
necessary for closing. In addition, formal consent to the transaction has not
yet been received from the owner of the land upon which the shopping center is
situated. Rating agency approval is required for the purchaser's assumption of
the first mortgage debt that encumbers the property, and the land owner's
consent is required by the applicable ground lease.
The amendment resolves certain disputed issues between Banyan and the
purchaser. Banyan allowed a price concession of $110,000 (reducing the total
purchase price to $20,390,000), in exchange for the purchaser's willingness to
accept certain tenant estoppel letters that the purchaser contended were not
in acceptable form. The price reduction is also intended to compensate the
purchaser for the financial impact of certain concessions that the purchaser
may be required to make to the lessor under the ground lease, in order to
obtain the ground lessor's consent to the transaction.
Banyan indicated that both the company and the purchaser intend to work
together to accomplish the remaining steps in order to close on or prior to
the September 30, 2002 closing date. If the rating agency approvals are not
received by such time, or other conditions precedent to closing are not
satisfied, the purchaser may terminate the contract without penalty.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that adopted a Plan of Termination and Liquidation on January 5, 2001.
On May 17, 2001, the Trust sold approximately 85% of its portfolio in a single
transaction. Other properties were sold on April 1, 2002 and May 1, 2002.
Banyan now owns a leasehold interest in one (1) real estate property located
in Atlanta, Georgia, representing approximately 9% of its original portfolio.
This property is subject to a contract of sale, currently scheduled to close
on September 30, 2002. Since adopting the Plan of Termination and
Liquidation, Banyan has made liquidating distributions totaling $5.45 per
share. As of this date, the Trust has 15,496,806 shares of beneficial interest
outstanding.
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement of
which involve risks and uncertainties such as the sale of the Trust's
remaining property, the amount of the remaining liquidating distributions, the
outcome of pending litigation and other risks and uncertainties that are
detailed from time to time in the Trust's reports filed with the Securities
and Exchange Commission, including the report on Form 10-K for the year ended
December 31, 2001 which was filed with the Securities and Exchange Commission
on March 21, 2002. Please see also the "Management's Discussion and Analysis
of Financial Condition and Results of Operations" section which was included
in our Form 10-Q for the quarter ended June 30, 2002 which was filed with the
Securities and Exchange Commission on August 9, 2002. Without limitation, the
foregoing words such as "anticipates", "expects", "intends", "plans", and
similar expressions are intended to identify forward-looking statements.
See Banyan's Website at http://www.banyanreit.com .
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, First Vice President,
General Counsel, +1-630-218-7255, bhiggins@banyanreit.com , or
Investor Relations, L.G. Schafran, Chairman and Interim
CEO-President, +1-630-218-7250, ir@banyanreit.com , both of
Banyan Strategic Realty Trust
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