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BINGHAM FARMS, MI-Malan Realty Investors Inc. says it suffered large losses in the third quarter compared to the same three months in 2001, as well as the first nine months of 2002 compared to the same time last year. However, the liquidating retail REIT reportsd it has signed contracts to sell eight properties for $12.5 million.

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.

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