Prime Group Realty REIT Hires Advisors

Prime Group Realty Trust has retained the services of investment bankers Prudential Securities Inc. and Lehman Brothers Inc. to advise the trust on the evaluation of strategic alternatives, including the possible sale of all or some of the trust’s assets.

Prime Group’s shares rose about 15% to $17 following the trust’s announcement in August that it was seeking to maximize shareholder value through an examination of a possible sale of the trust. The Trust’s shares have since drifted lower and closed at $15.13/16 today.

Dissatisfaction with the share price is the main reason management is seeking the advice of investment bankers. Michael Reschke, chairman of Prime Group, has said that he does not think the trust’s shares adequately reflect the underlying value of its real-estate holdings.

Other REITs are also considering similar action, including Chicago-based Great Lakes REIT.

Prime Group has 29 office properties and 37 industrial properties along with 219 acres of land in the Chicago area.