OAK BROOK, Ill., Dec. 4 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) announced today that it has received the $1 million earnest
money deposit previously held in escrow to secure the performance by Denholtz
Management Corp. of its obligations to purchase Banyan's University Square
Business Center property in Huntsville, Alabama.
The closing of the University Square property, originally scheduled for
May 2001, was deferred by agreement of the parties to December 19, 2001,
because of a prepayment prohibition relating to the mortgage on the property.
On December 3, 2001, Denholtz notified Banyan in writing that Denholtz no
longer intended to acquire University Square as required under the contract.
The parties then mutually directed the earnest money to be paid to Banyan.
Banyan will immediately make a required principal payment of $500,000 on
the industrial revenue bonds that finance Banyan's Riverport project in
Louisville, Kentucky. This payment is contractually required as a condition
of the extension of Banyan's letter of credit last October. The remaining
$500,000 will be used for general corporate purposes.
In addition to University Square, Banyan owns interests in two other
properties: Northlake Tower Festival Mall in Atlanta, Georgia and 6901
Riverport Drive in Louisville, Kentucky. Neither the Northlake property nor
the Riverport property were subject to the same contractual obligation as
University Square, but either could have been "put" to Denholtz prior to
January 9, 2002. The forfeiture of the University Square earnest money
extinguishes Banyan's right to "put" these other properties to Denholtz.
L.G. Schafran, Chairman, Interim President and CEO of Banyan, stated: "We
are, of course, disappointed that Denholtz failed to complete the purchase of
University Square. We will immediately commence a marketing program in an
effort to sell this asset at a favorable price. Our other properties are
already being marketed for sale and lease. We will continue to make periodic
liquidating distributions to our shareholders as conditions permit."
Banyan also cautioned that in light of the forfeiture by Denholtz, there
can be no assurance that Banyan will be able to achieve sales prices for its
properties sufficient to allow it to make the aggregate liquidating
distributions in amounts previously anticipated. Banyan expects that the
amounts and timing of subsequent liquidating distributions will primarily
depend upon the sale prices achieved for the Trust's remaining three
properties and the outcome of the pending litigation between Banyan and its
suspended president, Leonard G. Levine.
Since adopting its Plan of Termination and Liquidation on January 5, 2001,
Banyan has distributed $4.95 in liquidating distributions to its shareholders.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) which, on January 5, 2001, adopted a Plan of Termination and
Liquidation. On May 17, 2001, the Trust sold approximately 85% of its
portfolio in a single transaction and now owns interests in three real estate
properties located in Atlanta, Georgia; Huntsville, Alabama; and Louisville,
Kentucky. 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 properties, the amount of 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, 2000 and in the "Management's Discussion and Analysis of
Financial Condition and Results of Operations" section which was included in
the Trust's Form 10-Q for the quarter ended September 30, 2001 which was filed
with the Securities and Exchange Commission on November 14, 2001. Without
limitation of the foregoing, words such as "anticipates", "expects",
"intends", "plans", and similar expressions are intended to identify forward-
looking statements.
For more information please go to 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, 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
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