Friday January 26, 7:36 pm Eastern Time
Press Release
SOURCE: Horizon Group Properties, Inc.
Horizon Group Properties Completes Sale of Dry Ridge Outlet Center
CHICAGO, Jan. 26 /PRNewswire/ -- Horizon Group Properties, Inc. (HGP) (Nasdaq: HGPI - news), an owner, operator and developer of factory outlet and power centers, today announced the Company has completed the previously announced sale of its outlet shopping center in Dry Ridge, Kentucky to Sugar Oak Corporation for $2.5 million. The 117,980 square foot outlet center is located 35 miles south of Cincinnati and is currently 63% occupied. The purchase price was paid in cash at closing and the proceeds were used to reduce current outstanding indebtedness.
``We are pleased to have completed the sale of this asset,'' said Gary J. Skoien, Chairman, President and Chief Executive Officer of Horizon Group Properties. ``This transaction is the first step in repaying our loan with Nomura prior its maturity in July 2001.''
In the fourth quarter 2000 financial statements, Horizon Group Properties will reclassify the center on its balance sheet as being ``held for sale'' and will recognize an asset impairment loss of approximately $1.6 million or approximately $.47 per share. In addition, the Company will restate its results for the first three quarters of 2000 to reflect a 2% exit fee payable to the lender under the Nomura loan. The Company had previously accrued a fee of 1%. The effect, net of minority interests, will be to recognize additional expense of $92,000 or $.03 per share in each quarter.
Based in Chicago, Illinois, Horizon Group Properties, Inc. has 11 factory outlet centers and one power center in 8 states totaling more than 2.5 million square feet.
PREVIOUS RELEASE.....
Horizon Group Properties Executes Contract for Sale of Dry Ridge Outlet Center
CHICAGO, Dec. 27 /PRNewswire/ -- Horizon Group Properties, Inc. (HGP) (Nasdaq: HGPI - news), an owner, operator and developer of factory outlet and power centers, today announced the Company has entered into an agreement to sell its outlet shopping center in Dry Ridge, Kentucky to Sugar Oak Corporation for $2.5 million.
The contract requires Sugar Oak to complete its due diligence on the property on or about January 8, 2001 and to close on or about January 22, 2001. The 117,980 square foot outlet center is located 35 miles south of Cincinnati and is currently 68% occupied.
The purchase price is payable in cash at the time of closing and proceeds will be used to reduce current outstanding indebtedness. During the due diligence period, Sugar Oak may terminate the contract for any reason. There can be no assurance at this time that the sale will be consummated on the terms described above.
``We are pleased to have agreed upon a fair price for the sale of this asset,'' said Gary J. Skoien, Chairman, President and Chief Executive Officer of Horizon Group Properties. ``This center represents less than 2% of the total net operating income of our portfolio; yet, required a substantial amount of management effort. This transaction will be the first step in repaying our loan with Nomura prior to the July maturity date.''
In the fourth quarter 2000 financial statements, Horizon Group Properties will reclassify the center on its balance sheet as being ``held for sale'' and will recognize asset impairment loss of approximately $1.6 million or approximately $.47 per share. |
