SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
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Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
June 15, 1998
CLARION COMMERCIAL HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Maryland 001-14167 13-398895
(State or other jurisdiction (Commission File (I.R.S. Employer
of incorporation) Number) Identification Number)
335 Madison Avenue, New York, New York 10017
(Address of principal executive offices including zip code)
(212) 883-2500
(Registrant's telephone number
including area code)
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Item 5. Other Events
On June 11, 1998, Clarion Commercial Holdings, Inc.("Clarion") acquired
$41.7 million of subordinated commercial backed securities (the "Securities")
issued by Morgan Stanley & Co. Incorporated in a private placement pursuant to
Section 4(2) of the Securities Act of 1933, as amended. Clarion acquired the
Securities at par value with cash borrowed under existing repurchase agreements
with Bear, Stearns & Co., Inc. The news release announcing the acquisition of
these securities, dated June 15, 1998, is incorporated by reference herein, and
is attached and filed herewith as Exhibit 99.2.
Item 7. Financial Statements and Exhibits
(c) Exhibits
The following exhibit is filed as part of this report:
(99.2) News release of Clarion Commercial Holdings, Inc.
dated June 15, 1998.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CLARION COMMERCIAL HOLDINGS, INC.
(Registrant)
Date: June 16, 1998 By: /s/ Daniel Heflin
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Daniel Heflin
Chief Executive Officer and President
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EXHIBIT INDEX
Exhibit
Number Description
99.2 The news release of Clarion Commercial Holdings, Inc. dated
June 15, 1998.
Exhibit 99.2
Contact: Joanne Vitale
212-883-2536
CLARION COMMERCIAL HOLDINGS
CLOSES ADDITIONAL ASSET PURCHASES
NEW YORK, NY, June 15, 1998 - Clarion Commercial Holdings, Inc. (NYSE: CLR)
announced today the acquisition of $41.7 million of subordinated commercial
mortgage backed securities issued by Morgan Stanley in its $926 million large
loan securitization, Morgan Stanley Capital I Inc., 1998-XL1. The transaction
adds significantly to Clarion's recent asset acquisitions of $201 million,
further advancing achievement of the Company's business plan.
In the transaction, the Company acquired both the BB and B-rated classes. The
securities, backed by 11 mortgages, are secured by 83 properties which have a
weighted average loan-to-value of 58% and a weighted average debt service
coverage ratio of 1.90x. The portfolio is comprised of office (25%), retail
(23%), regional mall (18.5%), hotel (17.8%) and multifamily (14.2%) properties.
With the acquisition, Clarion received special servicing rights.
Daniel Heflin, President and CEO of Clarion Commercial Holdings, expressed his
pleasure at the announcement of the acquisition. "We are organized to capitalize
on this type of market opportunity, where the depth of property and market
knowledge is paramount. Our strategy will continue to focus on opportunities
which exhibit strong underlying fundamentals and which allow us to benefit from
our competitive strengths."
Clarion Commercial Holdings, Inc. is a specialty finance company that invests in
commercial real estate investments. The Company is managed by Clarion Capital,
LLC. Clarion Capital, LLC and its affiliates manage more than $6 billion of real
estate investments and have more than 350 employees in 20 offices nationwide.
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