FOG CUTTER CAPITAL GROUP INC. REPORTS REAL ESTATE SALE BY BOURNE END SUBSIDIARY
July 18, 2006
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FOR:
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FOG CUTTER CAPITAL GROUP INC.
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CONTACT:
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Fog Cutter Capital Group Inc.
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(503) 721-6500 Andrew A. Wiederhorn, CEO
(503) 721-6500 R. Scott Stevenson, Chief Financial Officer
(503) 721-6500 David Dale-Johnson, Chief Investment Officer
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For Immediate Release
FOG CUTTER CAPITAL GROUP INC. REPORTS REAL ESTATE SALE BY BOURNE END SUBSIDIARY
PORTLAND, Oregon— July 18, 2006 – Fog Cutter Capital Group Inc. (OTC: FCCG), reports that Bourne End Properties PLC ("Bourne End") has sold a 42 retail unit shopping center in Speke, England. Speke is located approximately eight miles to the south east of Liverpool. The property was developed in the 1960’s and will be part of a major regional redevelopment by the new owners and local government.
Bourne End will recognize a gain under U.S. financial reporting standards of approximately $1.1 million, of which, Fog Cutter’s share is approximately $0.3 million. Fog Cutter has also been allocated additional income from Bourne End in the approximate amount of $0.5 million under a revenue sharing agreement with the other investors as a result of exceeding certain profitability hurdles.
In December, 2000, Fog Cutter Capital Group organized and led a group of investors to purchase all of the outstanding capital stock of Bourne End, a specialist investor in retail property. The Company made its investment through its wholly owned subsidiary, BEP Islands Limited, along with partners Merrill Lynch (Jersey) Holdings Limited (a subsidiary of Merrill Lynch & Co., Inc.) and Greenbau Estuary Limited (an affiliate of Catalyst Capital LLP, formerly known as The Greenwich Group International). At the time of the acquisition, Bourne End had approximately GBP 169.6 million ($245.1 million) of assets and GBP 123.1 million ($177.9 million) of debt. The real estate assets consisted of 1.7 million square feet in fifteen shopping centers.
Bourne End has now sold all of its fifteen properties since the acquisition by Fog Cutter and its partners. The sales have each generated profits and have been consistent with the group’s strategy to reposition the centers, including new capital expenditures on existing space and new development on excess or adjoining land, with the goal of reselling the properties.
Fog Cutter Capital Group Inc. currently conducts its operations in three business segments: (1) restaurant operations through its Fatburger subsidiary; (2) commercial real estate mortgage brokerage operations through its subsidiary, George Elkins Mortgage Banking Company and (3) real estate, merchant banking and finance operations.
Forward Looking Statements
Certain statements contained herein and certain statements contained in future filings by the Company with the SEC may not be based on historical facts and are “Forward-Looking Statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-Looking Statements which are based on various assumptions (some of which are beyond the Company’s control) may be identified by reference to a future period or periods, or by the use of forward-looking terminology, such as “may,” “will,” “believe,” “expect,” “anticipate,” “continue,” or similar terms or variations on those terms, or the negative of those terms. Actual results could differ materially from those set forth in Forward-Looking Statements due to a variety of factors, including, but not limited to the following:
- economic factors, particularly in the market areas in which the Company operates;
- the financial and securities markets and the availability of and costs associated with sources of liquidity;
- competitive products and pricing;
- the real estate market;
- fiscal and monetary policies of the U.S. Government;
- changes in prevailing interest rates;
- changes in currency exchange rates;
- acquisitions and the integration of acquired businesses;
- performance of retail/consumer markets, including consumer preferences and concerns about healthy diet;
- effective expansion of the Company’s restaurants in new and existing markets;
- profitability and success of franchisee restaurants;
- availability of quality real estate locations for restaurant expansion;
- the market for Centrisoft’s software products;
- credit risk management; and
- asset/liability management.
Except as may be required by law, the Company does not undertake, and specifically disclaims any obligation, to publicly release the results of any revisions which may be made to any Forward-Looking Statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
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