Thank you for sharing!

Your article was successfully shared with the contacts you provided.

BINGHAM FARMS, MI-Malan Realty Investors Inc., a self-administered real estate investment trust, reported its net assets in liquidation increased by $738,000 to $28.6 million, for the quarter ending June 30, 2003.

As a result of the approval of a plan of complete liquidation by its shareholders, the company adopted the liquidation basis of accounting for all periods beginning after Sept. 30, 2002. On Sept. 30, 2002, in accordance with the liquidation basis of accounting, assets were adjusted to the estimated net realizable value and liabilities were adjusted to the estimated settlement amounts, including estimated costs associated with carrying out the liquidation. Accordingly, Malan no longer reports net income or funds from operations.

The increase in net assets was from the quarter ended March 31, 2003.

Malan also announced that it closed on the sales of four properties during the quarter and four others subsequent to June 30, 2003, at contract prices totaling $30.3 million. The company currently has nine operating properties and one vacant land parcel under contract for $61.2 million, one property under a letter of intent for $2.1 million and one additional property under an option for $1 million. The company also said certain letters of intent announced previously were terminated without proceeding to contract.

Malan said the increase in net assets for the quarter was primarily attributable to a decrease in the reserve for estimated liquidation costs of $1.1 million, due to payments of and estimated decreases in future costs of carrying out the liquidation. Operating income for the quarter of $10,000 consisted of income from properties and a $1.1 million decrease in estimated environmental investigation and remediation costs, based on revised information relating to cleanup costs at certain properties, and was offset by a charge of $1.4 million as the result of an unfavorable court decision in litigation brought by the company’s former president and CEO, Anthony S. Gramer. The company is currently appealing the decision.

The company also announced that subsequent to the end of the second quarter, it retired its $27 million Secured Convertible Notes, paid off its loan with JDI Loans, extended its loan with Salomon Brothers Realty Corp. for 12 months and was negotiating an extension of its loan with Cohen Financial. The company also entered into a two-year, $20.5 million loan with UBS Warburg Real Estate Investments, collateralized by Bricktown Square in Chicago. Proceeds of the loan were utilized to retire the Convertible Notes.

The company did not offer a forecast on the second half of 2003.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.