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Exhibit 99.2
FIRST UNION REAL ESTATE INVESTMENTS
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AT THE COMPANY
Neil Koenig
Interim Chief Financial Officer
(212) 905-1104
FOR IMMEDIATE RELEASE
FIRST UNION ANNOUNCES SECOND SALE CONTRACT FOR ASSET SALE TO
RADIANT INVESTORS
NEW YORK, NEW YORK, SEPTEMBER 18, 2000 - FIRST UNION REAL ESTATE INVESTMENTS
(NYSE: FUR) today announced today that it has executed a definitive sale
agreement with Radiant Investors LLC ("Radiant"), a Delaware limited liability
company, with respect to the purchase by Radiant of a parking facility in
Columbus, Ohio for approximately $5 million. This agreement marks the execution
of the second of two definitive agreements between the Company and Radiant with
respect to the purchase by Radiant of a number of real estate properties from
the Company for an aggregate purchase price of approximately $205 million. The
Company had announced last week the signing of a definitive agreement with
respect to the sale of certain other properties to Radiant for aggregate
consideration of approximately $200 million.
Under the transactions contemplated by the definitive sale agreements (the "Sale
Contracts"), the Company and its subsidiaries will receive aggregate
consideration of approximately $205 million. As part of the consideration,
Radiant will assume certain mortgages on the properties to be sold. It is
anticipated that the aggregate of these mortgages is approximately $125 million
in principal amount. Under certain circumstances, the Company may elect to
provide Radiant with financing with respect to certain of the properties to be
sold under the Sale Contracts. Radiant has deposited $1 million with respect to
execution of the Sale Contracts and will forfeit $125,000 of such deposits (and
the Sale Contracts will terminate) if additional an deposit of $6 million is not
posted by September 29, 2000
Radiant is affiliated with Radiant Partners LLC, which currently manages the
operations of the Company and is owned and controlled by Daniel P. Friedman,
David Schonberger and Anne N. Zahner, each an executive officer of the Company.
Mr. Friedman is also a Trustee of the Company.
The sale of the properties under the Sale Contracts is subject to several
conditions, including the consent of shareholders of the Company. It is
contemplated that a special meeting in lieu of the 2000 annual meeting of the
shareholders of the Company will be held in the fourth quarter of 2000. Proxy
materials will be prepared and mailed to shareholders in connection with the
meeting outlining the terms and conditions of the Sale Contracts and the consent
requested.
Certain statements contained in this news release that are forward-looking are
based on current expectations that are subject to a number of uncertainties and
risks, and actual results may differ materially. The uncertainties and risks
include, but are not limited to, changes in market activity, changes in local
real estate conditions and markets, actions by competitors, interest rate
movements and general economic conditions. Further information about these
matters can be found in the information included in the Annual Report filed by
the Company with the SEC on Form 10-K.
First Union Real Estate Equity and Mortgage Investments is a NYSE-listed
stapled-stock real estate investment trust (REIT) headquartered in New York,
New York.
