REIT Using Preferred Offering to Buy Out Centers

SOUTHFIELD, MI-Ramco-Gershenson Properties Trust has decided to sell special shares to raise money indirectly to take over full control of three properties and buy other facilities. The company is offering 1 million 9.5% series B cumulative redeemable preferred shares at $25 each, giving underwriters a 30-day option to purchase up to an additional 150,000 shares.

The money will be used to pay down outstanding credit balances. Then, the company will borrow money to buy out partner interest in the East Towne Plaza shopping center in Madison, WI, the Crossroads Centre in Toledo, OH and purchase the fee interest for the vacant Kmart adjacent to the company’s Naples Towne Centre.

The rest of the money will be used to redevelop company properties, including six facilities this year.

Company officials don’t expect negative effects on its revenue for 2002.

The company has a portfolio of 59 shopping centers, with approximately 11.5 million sf of gross leasable area, located in Michigan, Ohio, Wisconsin, New Jersey, Maryland, Virginia, North Carolina, South Carolina, Tennessee, Georgia, Alabama and Florida.