SOURCE: Feldman Mall Properties, Inc.

Feldman Mall Properties, Inc.

August 17, 2011 07:00 ET

Closing Date Extension for Preferred Shares Repurchase Agreement; Sale of Stratford Square Mall

NEW YORK, NY--(Marketwire - Aug 17, 2011) - Feldman Mall Properties, Inc. (PINKSHEETS: FMLP) made the following announcements:

Preferred Shares Repurchase

The closing date for the Company's repurchase of 2,000,000 shares of 6.85% Series A Cumulative Convertible Preferred Stock, liquidation preference $25.00 per share, from Inland American Real Estate Trust, Inc. ("Inland"), has been extended from August 17, 2011 to October 17, 2011. With the current extension of the closing date, the Company has deposited $100,000 with Inland as an earnest money deposit. All of the remaining terms and conditions contained and set forth in the June 10, 2010 Preferred Shares Repurchase Agreement between the Company and Inland remain the same.

Stratford Square Mall

The Company's subsidiary, FMP Stratford LLC ("FMPS"), has entered into an Agreement of Sale and Purchase of Real Estate with FMC Stratford Mall Members LLC (the "Purchaser"), an affiliate of Five Mile Capital Partners LLC ("Five Mile") of Stamford, CT, for sale of the FMPS's fee simple interest in the Stratford Square Mall, located in Bloomingdale, Illinois (the "Mall"). The price is $2.9 million, payable all in cash at settlement, subject to adjustment for customary prorations of rent and the like, along with reimbursement for certain escrow and reserve funds held by the lender. The Purchaser will assume the existing $104,500,000 first mortgage loan encumbering the Mall (the "Debt"), and an affiliate of the Purchaser will replace the Company's subsidiary, Feldman Operating Partnership LP, as "carve out" guarantor of the Debt. Other affiliates of Five Mile hold $35,000,000 principal amount of the Debt. Settlement is subject to a number of usual conditions, including lender and local municipality approvals, and is tentatively set for August 31, 2011, although the Purchaser has the right to extend the settlement date by 30 days.

About Feldman Mall Properties, Inc.

The Company's shares of common stock are quoted on Pink OTC Markets, a privately-owned company formerly known as Pink Sheets, which operates Pink Quote. Following foreclosure of the Golden Triangle Mall, and excluding the Northgate Mall, located in Cincinnati, Ohio, which is in receivership, the Company currently owns one (1) regional mall, Stratford Square, located in Bloomingdale, Illinois, and containing 1.3 million square feet. For more information on Feldman Mall Properties Inc., visit the Company website at www.feldmanmall.com.

Contact Information

  • CONTACT:
    FELDMAN MALL PROPERTIES, INC.
    John F. Dougherty, Jr.
    Senior Vice President and General Counsel and Secretary
    (215) 564-8084
    1065 Avenue of the Americas, 19th Floor
    New York, NY 10018