BIRMINGHAM, Mich., Dec. 3 /PRNewswire/ -- Malan Realty Investors, Inc.
(NYSE: MAL), a self-administered real estate investment trust (REIT), today
announced it has closed on a $25 million secured line of credit, a portion of
which was used to complete the acquisition of the Southwynd Theater in
Lawrence, Kansas.  The company also announced it is proceeding with
redevelopment plans for its Lawrence shopping center, which will be renamed
Pine Ridge Plaza, and two cinema complexes in suburban Chicago, which will be
financed by the credit facility.
    "The closing of the credit facility coincides with several significant
redevelopment activities," said Malan President and Chief Executive Officer
Anthony S. Gramer.  "We are pleased to be moving forward on the expansion of
our Lawrence property and the construction of the Melrose Park theaters, which
will contribute to revenues beginning in the second half of 1998.
    "The $25 million secured line of credit is being provided by Greenwich
Capital Markets, Inc., a division of National Westminster Bank, Plc.  In
addition to using funds to acquire the Southwynd Theater, the line is
available to fund the expansion of the Pine Ridge Plaza property and
construction of the two new cinema complexes.  The credit line may be used for
additional redevelopment projects, acquisitions and other operational
requirements, Gramer said.  The line of credit has a two-year term, which may
be extended for a period of one year and can be expanded to $50 million for
additional acquisitions.  The facility carries an interest rate of LIBOR plus
150 basis points.
    The 42,500 square-foot 12-plex Southwynd Theater in Lawrence, featuring
state-of-the-art stadium seating, was acquired from Hollywood Theaters, Inc.
for $4.2 million.  Hollywood will operate the complex as part of a sale-and-
leaseback agreement between the two companies.  The lease runs for 20 years,
with base rent of approximately $587,000 annually.  The Southwynd Theater,
which opened in May, replaces the Twin Cinema at Malan's retail shopping
property two blocks away.
    Malan announced that as part of its renovation and expansion, the company
will rename its Lawrence retail property Pine Ridge Plaza.  Located at Route
59 (Iowa Street) and 33rd Street, the shopping center will increase to 267,000
square feet of gross leaseable area (GLA) from 91,048 square feet. To
facilitate the expansion, Malan has acquired an additional 9 acres of land at
the site, and land clearance and site preparation have already begun.  Gramer
said the company expects to make an announcement on new tenants during the
next month.  Work on the new stores is scheduled to begin in early 1998, with
an October completion.  As previously announced, Kmart will expand its present
location to 117,000 square feet of GLA from 82,000 square feet as part of a
complete remodeling project.
    Two cinema complexes, to be operated by Cinemark USA, the nation's fourth
largest operator of movie theaters, are moving forward in the Chicago area.
Malan has received final approval to build a 58,000 square-foot 10-plex
theater complex in suburban Melrose Park.  Malan expects to demolish the
present structure on the property within the next two months and begin
construction shortly thereafter.  The theater is expected to open in November
1998.  A new 59,000 square-foot 17-plex theater complex currently under
construction in North Aurora has a May 1998 scheduled opening.
    Statements in this news release regarding future revenues or expenses may
be considered forward looking within the meaning of the Securities Exchange
Act of 1934.  Such statements are subject to important factors that could
cause results to differ materially from those in the forward looking
statements, including the factors as detailed in the company's Annual Report
on Form 10-K for the year ended December 31, 1996.
    Malan Realty Investors, Inc. owns and operates a portfolio of 53 shopping
centers and free-standing facilities, primarily in the Midwest.  The
properties represent approximately 5.7 million square feet of gross leaseable
area.
    News releases for Malan Realty Investors are available though Company News
On-Call by fax at 800-758-5804, ext. 114165, or http://www.prnewswire.com.

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