BRT Consumates Joint Venture Relating to Newark, New Jersey Properties (Business Wire)
Mon, 8 Jun 2009 13:30:00 Etc/GMT
In the March 31, 2009 quarter, BRT had reported that the former loans totaling approximately $38 million were non-earning and that it had taken a reserve against these loans of $11 million, which is substantially now represented by an equity interest and a preferred equity interest in the joint venture.
The new $27,000,000 mortgage will mature in five years, with a two-year extension option and will provide for an interest rate of 11% per annum, of which 6% will be paid currently and 5% will accrue. The extension option cannot be exercised unless all accrued interest is brought current at the time of exercise.
Jeffrey A. Gould, President and Chief Executive Officer of BRT, commented that the venture will seek to both generate rental revenues from the existing properties as well as seek the redevelopment of these inner-city locations. Mr. Gould further noted that the controlling principal of the RBH Group has significant knowledge of the Newark, New Jersey market and that an affiliate of his will be the manager and have operating responsibility for the activities of the joint venture. However, BRT’s consent is required for major joint venture decisions.
BRT REALTY TRUST is a mortgage-oriented real estate investment trust.
Certain information contained herein is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the value of the collateral securing loans, potential property sales, property management, foreclosure activities and dividend payments. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words “may,” “will,” “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project,” or similar expressions or variations thereof. Forward looking statements, including, with respect to a non-performing loans, involve known and unknown risks, uncertainties and other factors, which, in some cases, are beyond BRT’s control and could materially affect actual results, performance or achievements. Investors are cautioned not to place undue reliance on any forward-looking statements.
Contact:
BRT Realty Trust Simeon Brinberg, 516-466-3100
source: http://biz.yahoo.com/bw/090608/20090608005750.html?.v=1