FOR IMMEDIATE RELEASE
March 12, 1999
MGI PROPERTIES ("MGI")
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SIGNS AGREEMENT TO SELL NEW ENGLAND PROPERTIES
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BOSTON, MASSACHUSETTS....MGI Properties (NYSE:MGI), today announced
that it has entered into an agreement to sell its 4.4 million square-foot
portfolio of 53 New England properties to a private real estate investment
group. The sale is subject to the customary terms and conditions for a
transaction of this size, including the purchaser's satisfactory completion of
due diligence, engineering and environmental inspections, and approval of title
and surveys. This sale is expected to close in MGI's third quarter, although
there can be no assurance that it will be successfully completed. The purchase
price for the sale of these properties, coupled with management's current
estimates and pricing and other assumptions with respect to the remainder of the
portfolio, is expected to result in aggregate net liquidation proceeds of
between $29 and $30 per share, after all fees and liquidation costs; however, no
assurance can be given that per share net cash proceeds will be within this
range or will reach this range.
X. Xxxxxx Xxxxx, Chairman of the Board of Trustees, stated that this
agreement represents a major step in executing the Plan of Liquidation that was
approved by the shareholders on October 14, 1998. In addition, Mr. Xxxxx stated
that the remaining 14 properties, which aggregate 1.2 million square feet and
includes one retail property in New England, six non-New England office
properties, three non-New England retail centers, a parcel of land, and three
residential properties consisting of 959 multi-family units, are now being
marketed.
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For further information contact:
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Xxxxxxx X. Xxxxxx, Executive Vice President and Treasurer (000) 000-0000
This Press Release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These forward-looking statements are dependent on a number
of factors which could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. Such factors include,
among other things, the risks of future action or inaction by the Board of
Trustees with respect to the Plan of Liquidation (and the actual results
thereof), including the possibility of litigation pertaining thereto; the net
realizable value of the Trust's properties in the event the Plan of Liquidation
is implemented; changes in national and local economic and financial market
conditions; the successful completion of the sale described in this press
release, as well as those factors set forth in MGI's Form 10-K for the year
ended November 30, 1998, including those set forth under "Forward-Looking
Statements," "Other" and Item 1 - "Adoption of Liquidation Plan."
