The properties are the Westland Mall in the Detroit suburb of Westland, MI, an 85,000-sf shopping center anchored by Dick's Sporting Goods, and Westland Plaza in Madison, WI, a 122,534-sf shopping center anchored by Burlington Coat Factory. Terms of the sale included assumption by the purchaser of Westland Mall of the existing mortgage with Wells Fargo Bank of $5.5 million. Net cash proceeds to Malan from the two transactions were approximately $4.3 million.

The company also announced a move that will reduce its outstanding debt. Malan says it is calling for redemption on Jan. 20, 2004, $7.5 million of its 9.5% convertible subordinated debentures due July 15, 2004. The portion of the debentures being called will be redeemed at par, plus accrued but unpaid interest, and retired. The aggregate principal balance of the debentures is currently $32.6 million, which will decline to $19.6 million after a previously announced partial redemption is completed Dec. 18, 2003.

"We are pleased to be closing the year with strong property-sales activity, including these multi-tenant shopping centers," says Jeffrey Lewis, president and CEO of Malan Realty Investors. "Upon completion of this redemption, total debt will have decreased by more than $40 million since the close of the third quarter, and the debentures have been reduced by over 70%." Since August 2002, Malan has been working on a plan to liquidate all of its propertues. After the two newly announced sales, the company will still own a portfolio of 27 properties located in eight states, containing an aggregate of approximately 2.2 million sf.