Horizon Completes Sale of Interests in Outlet Center Portfolio
Monday February 23, 11:03 pm ET
CHICAGO, Feb. 23 /PRNewswire-FirstCall/ -- Horizon Group Properties, Inc. (HGP) (Nasdaq: HGPI - News), an owner, operator and developer of factory outlet centers and land developer, announced that Horizon Group Properties, L. P. ("HGP LP") of which HGP is the general partner and 70% owner, had completed the sale of a 48.9% interest in the entities that own six outlet centers. The sale was to Pleasant Lake Apts. Limited Partnership ("Pleasant Lake"), an affiliate of Howard Amster, a director and significant shareholder of HGP. The price was $11.5 million.
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The six outlet centers are located in, Holland, Michigan, Medford, Minnesota, Laughlin, Nevada, Monroe, Michigan, Tulare, California and Warrenton, Missouri. HGP's corporate office building in Muskegon, Michigan is also included in the portfolio of properties in which Pleasant Lake acquired an interest. Pleasant Lake had previously purchased a 49% ownership interest in HGP's outlet centers in Gretna, Nebraska, Sealy, Texas (which has since been sold) and Traverse City, Michigan. HGP utilized $8.4 million of the sales proceeds to partially repay a $9.1 million loan made by an affiliate of Mr. Amster in conjunction with HGP's acquisition of the 650 acre master planned real estate development in Huntley, Illinois in June of 2003. The Huntley development was not included in the transaction with Pleasant Lake.
Commenting on today's announcement, Chairman, President and Chief Executive Officer Gary J. Skoien said, "This transaction significantly lessens our exposure to the factory outlet sector and significantly reduces the debt on our development project in Huntley. We believe that this master planned community in northwest suburban Chicago presents a great opportunity for the Company and its shareholders."
Based in Chicago, Illinois, Horizon Group Properties, Inc. owns interests in 8 factory outlet centers in 6 states totaling approximately 1.6 million square feet and is the developer of a master planned community in suburban Chicago. |
