BINGHAM FARMS, Mich., Dec. 11 /PRNewswire-FirstCall/ -- Malan Realty
Investors, Inc. (NYSE: MAL), a self-administered real estate investment trust
(REIT), today announced that it has completed the sale of two shopping centers
totaling 207,534 feet of gross leasable area.
The properties are the Westland Mall in Westland, Michigan, an 85,000
square-foot shopping center anchored by Dick's Sporting Goods, and Westland
Plaza in Madison, Wisconsin, a 122,534 square-foot shopping center anchored by
Burlington Coat Factory. Terms of the sale included assumption by the
purchaser of Westland Mall of the existing mortgage with Wells Fargo Bank of
$5.5 million. Net cash proceeds to Malan from the two transactions were
approximately $4.3 million.
Malan also announced it is calling for redemption on January 20, 2004,
$7.5 million of its 9.5% Convertible Subordinated Debentures due July 15,
2004. The portion of the Debentures being called will be redeemed at par,
plus accrued but unpaid interest, and retired. The aggregate principal
balance of the Debentures is currently $32.6 million, which will decline to
$19.6 million after a previously announced partial redemption is completed
December 18, 2003.
"We are pleased to be closing the year with strong property-sales
activity, including these multi-tenant shopping centers," said Jeffrey Lewis,
president and chief executive officer of Malan Realty Investors. "Upon
completion of this redemption, total debt will have decreased by more than
$40 million since the close of the third quarter, and the debentures have been
reduced by over 70 percent."
The portion of the Debentures to be redeemed will be selected by lot. The
transfer books for the Debentures will be closed on December 19, 2003 for
purposes of this selection process. The transfer books will be reopened on
the next business day. The Debentures currently trade on the New York Stock
Exchange under the CUSIP number 561063-AA-6001.
Prior to 5:00 p.m., EST, on January 20, 2004, holders of Debentures called
for redemption may convert their Debentures into shares of Malan common stock
at a price of $17.00 per share, or approximately 58.82 shares per $1,000
principal amount of Debentures. Cash will be paid in lieu of fractional
shares. On December 10, 2003, the closing price of Malan common stock on the
New York Stock Exchange was $5.16 per share.
Holders of Debentures called for redemption who do not convert their
Debentures into Malan common stock will have such Debentures redeemed on
January 20, 2004. Upon redemption, they will receive $1,001.30 per $1,000
principal amount of Notes (consisting of the redemption price of $1,000 plus
accrued and unpaid interest thereon from January 15, 2003 up to but not
including January 20, 2004 of $1.30). No further interest will accrue
thereafter on Debentures called for redemption.
A notice of redemption is being mailed to all registered holders of the
Debentures, including, where applicable, information concerning the specific
Debentures selected by lot for redemption. Copies of the notice of redemption
may be obtained from The Bank of New York, the paying agent and conversion
agent, by calling Roxane Ellwanger at (312) 827-8574. The address of The Bank
of New York is 2 N. LaSalle Street, Suite 1020, Chicago, Illinois 60602.
Malan Realty Investors, Inc. owns and manages properties that are leased
primarily to national and regional retail companies. In August 2002, the
company's shareholders approved a plan of complete liquidation. The company
owns a portfolio of 27 properties located in eight states that contains an
aggregate of approximately 2.2 million square feet of gross leasable area.
Safe Harbor Statement: This news release may contain 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 and execute the plan of liquidation, expenses incurred
during the liquidation period, the company's ability to retire or refinance
its indebtedness as it comes due, its success in selling assets, the changing
market conditions affecting the sale prices of its properties, the
disproportionate effect of changes in proceeds from property sales on
liquidating distributions due to the company's capital structure, economic
downturns, leasing activities, the outcome of the company's appeal of the
court's decision affirming the Gramer litigation, bankruptcies and other
financial difficulties of tenants, the cost of addressing environmental
concerns, unforeseen contingent liabilities, other risks associated with the
commercial real-estate business, and other concerns as detailed in the
company's filings from time to time with the Securities and Exchange
Commission.
News releases for Malan Realty Investors are available on the company's
Web site at http://www.malanreit.com or in the Company News section on the
PR Newswire Web site at 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:
John Roberson, Media Relations of Malan
Realty Investors, Inc., +1-248-644-7110; or Fred Nachman of
Marjan Communications Inc., +1-312-867-1771
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