FOG CUTTER CAPITAL GROUP INC. REPORTS PURCHASE OF FIFTEEN RETAIL PROPERTIES
August 5, 2003
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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, Chairman and CEO
(503) 721-6500 Robert Rosen, President, or
(503) 721-6500 R. Scott Stevenson, Chief Financial Officer
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For Immediate Release
FOG CUTTER CAPITAL GROUP INC. REPORTS PURCHASE OF FIFTEEN RETAIL PROPERTIES
PORTLAND, Oregon— August 5, 2003 – Fog Cutter Capital Group Inc. (Nasdaq: FCCG), reports that its wholly owned subsidiary, Fog Cap Retail Development LLC, has completed the purchase of 15 freestanding retail buildings for a purchase price of $4.6 million. Prior to the purchase, the Company was the lessee of each of the buildings and currently sub-leases 12 of the 15 properties to a variety of small businesses. Each building is 4,500 square feet in size and the properties are located in Texas, California, Arizona, Oklahoma and Mississippi.
These properties were initially part of an October 2002 transaction in which the Company assumed leasehold interests in 109 free-standing retail stores located throughout the United States. The leased properties are sublet to a broad tenant mix including convenience stores, shoe stores, video rental outlets, auto parts dealers, carpet retailers and other small businesses. The leases involved in the initial transaction covered approximately 500,000 square feet of retail space located in 24 states.
In addition to the current purchase, the leasehold interests on five retail stores from the initial leasehold acquisition were sold to the property owner for $0.1 million during the quarter ended June 30, 2003.
The purchase of the 15 retail locations will reduce the long-term carrying costs on these properties and will allow the Company greater flexibility in the development or disposal of these assets. “We believe that the current weakness in the U.S. economy makes the timing of this investment strategic in the retail sector,” stated Andrew Wiederhorn, chairman and chief executive officer of Fog Cutter Capital Group Inc.
Fog Cutter Capital Group Inc. focuses on investing, structuring and managing a wide range of financial assets, including the acquisition of debt or equity positions in companies requiring assistance in restructuring their operations; investments in mortgage-backed securities and other real estate related assets; provision of corporate mezzanine financing and other similar investments. The Company invests where its expertise in intensive asset management, credit analysis and financial structuring can create value and provide an appropriate risk-adjusted rate of return. The Company maintains a flexible approach with respect to the nature of its investments, seeking to take advantage of opportunities as they arise or are developed.
Forward Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements so long as those statements are identified as forward-looking and are accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in such statements. All of the statements contained in this release, which are not identified as historical, should be considered forward-looking. In connection with certain forward-looking statements contained in this release and those that may be made in the future by or on behalf of the company which are identified as forward-looking, the company notes that there are various factors that could cause actual results to differ materially from those set forth in any such forward-looking statements.
Such factors include but are not limited to, the real estate market, the specialty retail market , the availability of financing, interest rates, and European markets. Accordingly, there can be no assurance that the forward-looking statements contained in this release will be realized or that actual results will not be significantly higher or lower. The forward-looking statements have not been audited by, examined by, or subjected to agreed-upon procedures by independent accountants, and no third party has independently verified or reviewed such statements. Readers of this release should consider these facts in evaluating the information contained herein. The inclusion of the forward-looking statements contained in this release should not be regarded as a representation by the company or any other person that the forward-looking statements contained in this release will be achieved.
In light of the foregoing, readers of this release are cautioned not to place undue reliance on the forward-looking statements contained herein.
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