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EXHIBIT 99.1
PRIME GROUP REALTY TRUST [PRIME GROUP REALTY TRUST LOGO]
77 WEST WACKER DRIVE,
SUITE 3900
CHICAGO, ILLINOIS 60601
NYSE: PGE
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AT THE COMPANY: AT THE FINANCIAL RELATIONS BOARD:
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Richard S. Curto Louis G. Conforti Todd Tarbox Georganne Palffy
Chief Executive Officer Office of the President General Inquiries Investor Inquiries
312/917-1300 Acting Chief Financial Officer 312/266-7800 312/266-7800
312/917-1300
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FOR IMMEDIATE RELEASE
MONDAY, AUGUST 14, 2000
PRIME GROUP REALTY TRUST TO STUDY STRATEGIC ALTERNATIVES
CHICAGO, AUGUST 14, 2000 - PRIME GROUP REALTY TRUST (NYSE: PGE) today announced
that in response to several inquiries in recent weeks from companies interested
in a potential strategic transaction with the Company, the Board of Trustees of
PGE has decided to engage a financial advisor to assist the Company in studying
all of its strategic alternatives. The alternatives being studied will include,
but are not necessarily limited to, a merger or other business combination
involving the Company, a sale of all the assets of the Company, or the
completion of the Company's previously announced asset sale and stock repurchase
program.
Michael W. Reschke, Chairman of the Board of Trustees of PGE, stated "Since our
IPO in November of 1997, we believe the Company has significantly increased its
net asset value through the aggressive leasing and management of its portfolio,
the purchase of new properties on an accretive basis, and the development of new
assets, including Dearborn Center which is already 50% preleased." Mr. Reschke
continued, " We believe our current stock price does not reflect the underlying
value of our assets and, therefore, we have decided to study all options to
capture this value."
Richard S. Curto, Chief Executive Officer of PGE stated, "While the Chicago real
estate market and economy show continued strength and the Company's value-added
strategy continues to be successful, we believe it is appropriate to evaluate
all alternatives to maximize shareholder value."
Prime Group Realty Trust is a fully-integrated, self-administered, and
self-managed real estate investment trust (REIT) which owns, manages, leases,
develops, and redevelops office and industrial real estate, primarily in the
Chicago metropolitan area. Including joint ventures, the Company's portfolio
consists of 29 office properties, containing an aggregate of 9.5 million net
rentable square feet and 37 industrial properties containing an aggregate of 4.8
million net rentable square feet. The portfolio also includes 218.9 acres of
developable land and rights to acquire more than 159.3 additional acres of
developable land which management believes could be developed with approximately
10.3 million rentable square feet of additional office and industrial space.
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PRIME GROUP REALTY TRUST
ADD-1-
This press release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 that reflect
management's current views with respect to future events and financial
performance. The words "believes", "expects", "anticipates", "estimates" and
similar words or expressions are generally intended to identify forward-looking
statements. Actual results may differ materially from those expected because of
various risks and uncertainties, including, but not limited to, changes in
general economic conditions, adverse changes in real estate markets as well as
other risks and uncertainties included from time to time in the Company's
filings with the Securities and Exchange Commission.
