The sale, which includes the Orchard-14 shopping center in Farmington Hills, will close by February.
For the third quarter, though, the company's net loss was $1.3 million. In third quarter 2001, the company had posted a $2.1 million net gain. Worse, Malan is reporting a net loss of $7.2 million for 2002 so far,compared with a net loss of $1.1 million for the period of January-September 2001.
Environmental cleanup of more than $3 million at certain properties was part of the reason for the loss, company officials say in a statement.
The company also settled with the city of Chicago on a $7.8-million loan involving its Brickyard Mall by paying $1 million.
Malan officials said as a result of the adoption of a liquidation in August, the company will no longer report funds from operations or cash available for distribution, as it no longer believes that those measures are meaningful.
Malan has signed an exclusive listing agreement with CB Richard Ellis Inc. for its properties. The agreement lasts for one year, according to Malan officials.
The plan provides for the orderly sale of assets, establishing reserves for the payment of liabilities and expenses, distribution of net proceeds of the liquidation to common shareholders, wind-up of operations and dissolution of the company.
The liquidation plan is expected to take up to two years or more to complete. The company owns and manages 52 properties that are leasedprimarily to national and regional retail companies.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.