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EXHIBIT 99.1
FIRST UNION REAL ESTATE INVESTMENTS
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AT THE COMPANY
Brenda J. Mixson
Chief Financial Officer
(212) 905-1104
FOR IMMEDIATE RELEASE
FIRST UNION REAL ESTATE INVESTMENTS
ANNOUNCES EXTERNALLY MANAGED STATUS
NEW YORK, NEW YORK, JUNE 1, 2000 --- FIRST UNION REAL ESTATE INVESTMENTS (NYSE:
FUR) announced that as expected, Daniel P. Friedman, its President and Chief
Executive Officer, and David Schonberger and Anne Zahner, its Executive Vice
Presidents, terminated their employment with First Union in accordance with
their existing agreements. Mr. Friedman received a $1,001,000 severance payment
and Mr. Schonberger and Ms. Zahner each received a severance payment of
$630,000. As a result of these terminations, the previously announced asset
management agreement between First Union and Radiant Partners, LLC, which is
owned and controlled by Messrs. Friedman and Schonberger and Ms. Zahner, became
effective and First Union became an externally managed REIT.
Radiant Partners will be responsible for administering and overseeing the
business and financial affairs of First Union and its affiliates and will hire
all First Union's remaining personnel, other than Brenda Mixson, its Chief
Financial Officer, who will continue to be employed by First Union. Radiant will
also reimburse First Union for the use of First Union's New York City
headquarters. All property level management and Company accounting functions
have been outsourced to third parties and will be paid for by First Union. First
Union will also continue to engage professionals directly as and when needed.
As previously announced, Radiant Partners will receive a monthly fee of $125,000
for its services. First Union and Radiant Partners recently agreed that either
party may terminate the agreement by notifying the other party prior to July 1,
2000 of its intention to terminate the agreement, in which case the agreement
will terminate 30 days later and First Union will not be responsible for any
incentive fee or termination payments otherwise provided under the agreement.
There can be no assurance that the agreement will not be terminated prior to
July 31, 2000.
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 10K/A.
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.
