OAK BROOK, Ill., Oct. 16 /PRNewswire-FirstCall/ -- Banyan Strategic Realty
Trust (OTC Bulletin Board: BSRTS) announced today the completion of the sale
of its last remaining real estate asset - The Northlake Tower Festival
Shopping Center in Atlanta, Georgia - to Northlake Festival, LLC for a gross
purchase price of $20.4 million. Northlake Tower Festival Shopping Center is
a 322,000 square foot power center on 38 acres located in suburban Atlanta.
It is currently ninety-seven percent (97%) leased to forty-nine tenants
including: Toys R-Us, Office Max, PetSmart, Haverty's, AMC Theaters and Bally
Total Fitness.
Upon closing, Banyan credited to the purchaser the outstanding balance on
the first mortgage loan ($16.73 million), which the purchaser has assumed.
Banyan also paid $0.43 million in real estate commissions, closing costs,
prorations and transaction expenses, resulting in net proceeds of
$3.24 million ($0.21 per share).
L.G. Schafran, Interim President, Chairman and CEO of Banyan, commenting
upon the Northlake transaction, said: "We are pleased to announce the closing
of our final real estate asset, completing within a span of less than twenty-
two months the disposition portion of our Plan of Termination and Liquidation,
adopted in January of 2001. We can now direct all of our attention to a
resolution of the Levine litigation, which we hope to accomplish not later
than the end of the second quarter of 2003. Further, assuming we are
successful in obtaining the no-action relief we have sought from the
Securities and Exchange Commission, we are poised and ready to dissolve the
Trust on December 31, 2002, and unless the Levine litigation is resolved by
that time, to transfer all remaining liabilities and assets into a liquidating
trust on that date. If the Levine litigation has been resolved by December
31, 2002, we expect to complete our dissolution and make a final distribution
of all cash, without the necessity of a liquidating trust."
Banyan emphasized that once it transfers all of its assets and liabilities
into a liquidating trust, which is expected to occur on December 31, 2002,
there will be no further trading in Banyan's shares of beneficial interest.
In order to fund the litigation and other operations of the liquidating trust
and to maintain adequate reserves, Banyan indicated that there would be no
distribution to shareholders of any portion of the net proceeds of the
Northlake disposition. Instead, all funds remaining on hand at the completion
of the litigation and conclusion of the liquidating trust will be distributed
to shareholders at that time.
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, May 1, 2002 and
October 15, 2002. Banyan intends to dissolve on December 31, 2002 and, on
that date, to transfer all of its remaining assets and liabilities into a
liquidating trust. There will be no further trading of Banyan's shares of
beneficial interest after the formation of and transfer to the liquidating
trust. 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 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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