SOURCE: Feldman Mall Properties, Inc.

Feldman Mall Properties, Inc.

November 18, 2011 07:30 ET

Sale of Stratford Square Mall; Repurchase of Preferred Stock

NEW YORK, NY--(Marketwire - Nov 18, 2011) - Feldman Mall Properties, Inc. (PINKSHEETS: FMLP) made the following announcements:

Stratford Square Mall

On November 10, 2011, the Company's subsidiary, FMP Stratford LLC ("FMP Stratford"), completed the sale of the Stratford Square Mall located in Bloomingdale, Illinois, to FMC Stratford Mall Members LLC ("Purchaser"). Consideration consisted of cash in the amount of $2,012,500 (before refunds and certain additional settlement costs) and the assumption by Purchaser of mortgage indebtedness amounting to $104,500,000. The maturity date of the mortgage indebtedness is May 9, 2012, and FMP Stratford had no further right(s) to extend that date. The Mall was an impaired asset on FMP Stratford's books having a value (unaudited) of $40,822,333.75 as of December 31, 2010.

Preferred Shares Repurchase

On November 16, 2011, the Company completed its repurchase of 2,000,000 shares of 6.85% Series A Cumulative Convertible Preferred Stock, liquidation value $25.00 per share (the "Preferred Shares"), from Inland American Real Estate Trust, Inc. The Preferred Shares constitute all shares of preferred stock issued by the Company and outstanding. The total consideration paid to Inland American amounted to $1,000,000. An earnest money deposit of $200,000 had previously been placed with Inland American and the remaining balance of $800,000 was paid at closing. In addition, the Company paid a $50,000 extension fee to Inland American on or about October 17, 2011. Concurrently with the repurchase, Thomas P. McGuinness and Jonathan J. Stein resigned as directors of the Company.

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. 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