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CHICAGO-With help from an affiliate of major shareholder Howard M. Amster, Horizon Group Properties Inc. has restructured a loan on a shopping center in Tulare, CA, while settling up on mortgages on outlet centers in Daleville, IN, and Somerset, PA. All three loans, totaling $13.2 million, had been in default.

The REIT is in talks to sell the centers in Daleville, IN and Somerset, PA but the Tulare, CA center is a keeper. The new $1.98-million, six-year loan on the property carries an 8.46% interest rate amortized over 25 years, but the deal also includes immediate forgiveness of $798,000 in penalties and interest, as well as another $448,000 if the REIT is current on payments through September.

“Tulare continues to produce increasing sales and retailer interest,” says chairman, president and chief executive officer Gary J. Skoien. “We are currently expanding this center with Nike as the anchor tenant. Acquiring the loans on Daleville and Somerset also allows us to explore other opportunities for these two centers.”

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