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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 9, 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
The news release of Clarion Commercial Holdings, Inc. dated June 9, 1998,
regarding its June 2, 1998 purchase of $201 million in commercial real estate
investments from Clarion Capital LLC, is incorporated by reference herein, and
is attached and filed herewith as Exhibit 99.1.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
The following exhibit is filed as part of this report:
(99.1) News release of Clarion Commercial Holdings, Inc. dated
June 9, 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 10, 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
- ------ -----------
99.1 The news release of Clarion Commercial Holdings, Inc. dated
June 9, 1998.
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Exhibit 99.1
Contact: Joanne Vitale
212-883-2536
CLARION COMMERCIAL HOLDINGS
COMPLETES MAJOR ASSET PURCHASES
NEW YORK, June 9, 1998 - Clarion Commercial Holdings, Inc. (NYSE - CLR) is
pleased to announce the purchase of $201 million in commercial real estate
investments. With the completion of this purchase, the Company has achieved
its objective of immediately deploying the capital raised in its recent IPO.
The Company now owns a diversified portfolio of investments in which no
single asset represents more than 10% of the asset base.
"The acquisition of these assets supports our pledge to shareholders to put
the full proceeds of our IPO to work quickly and effectively," said Daniel
Heflin, President and CEO of Clarion Commercial Holdings. Mr. Heflin added,
"Our ability to deliver investments of this caliber in such a timely fashion
is indicative of the pipeline of commercial real estate investments that we
have at our disposal."
The Company acquired 24 commercial real estate investments, including
commercial mortgage backed securities (CMBS), mortgage loans and mezzanine
investments. The investments were purchased from private funds managed by
Clarion Capital, LLC at prices based on bids received from market makers, as
described in the Company's registration statement.
The investments purchased by the Company include:
CMBS investments - The Company purchased 22 classes of CMBS collateralized by
over 2700 commercial mortgage loans. The CMBS portfolio has an average credit
rating of BB.
Commercial Mortgage Loans - The Company purchased a $12.6 million first
mortgage loan secured by a 183-room full service hotel located in Newport
News, Virginia. The loan has a loan-to-value ratio of 70% and matures in 2004.
Mezzanine Investments - The Company purchased a $3.7 million mezzanine
investment in a 161,485 square foot office center located in Clifton, New
Jersey. In addition to receiving interest payments from the loan, the Company
will receive a percentage of certain revenues and capital gains.
Clarion Commercial Holdings, Inc. is a newly-formed specialty finance company
that invests in commercial real estate debt 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.
