NORTON SHORES, Mich., Jan. 8 /PRNewswire-FirstCall/ -- Horizon Group Properties, Inc. (Pink Sheets: HGPI), announced today that it has sold minority interests in the entities that own five of its outlet centers to Bright Horizons of South Florida, LLC ("Bright Horizons"). The centers subject to the transaction are located in Burlington, Washington, El Paso, Texas, Fremont, Indiana, Gettysburg, Pennsylvania and Oshkosh, Wisconsin. Bright Horizons acquired a 22.5% interest in the entities that own the outlet centers (excluding the entity that owns the center in El Paso, in which it acquired a 19.6% preferred interest and a 17.8% common interest). The total price for the acquired ownerships interests was $1.35 million.
Bright Horizons has agreed to acquire an additional 26.5% interest in the entities that own the outlet centers (excluding the entity that owns the center in El Paso, in which it agreed to acquire an additional 23.6% preferred interest and an additional 21.8% common interest) on or before March 31, 2010 for additional consideration of $1.35 million. There can be no assurance that the second part of the transaction will be completed.
Bright Horizons is an entity controlled by Somerset Outlet Center, L.P., of which Howard Amster, a director and significant shareholder of HGPI, owns the controlling interest. Gary Skoien, Chairman, CEO, and President of HGPI owns a non-controlling interest in Somerset Outlet Center L.P.
Said Gary Skoien, Chairman, President, and Chief Executive Officer of HGPI, "The proceeds from these transactions will put us in a stronger position to continue our development activities on new projects, of which our center in Oklahoma City is first and foremost."
Based in Norton Shores, Michigan with executive offices in Rosemont, Illinois, Horizon Group Properties, Inc. is an owner and developer of factory outlet shopping centers and is the developer of a master planned community in suburban Chicago. For more information, please visit www.horizongroup.com.
Safe Harbor Statement: The statements contained herein, which are not historical facts, are forward-looking statements based upon economic forecasts, budgets, and other factors which, by their nature, involve known risks, uncertainties and other factors which may cause the actual results, performance or achievements of Horizon Group Properties, Inc. to be materially different from any future results implied by such statements. In particular, among the factors that could cause actual results to differ materially are the following: business conditions and the general economy, competitive factors, interest rates and other risks inherent in the real estate business.
SOURCE Horizon Group Properties, Inc.