Cali Realty Receives Shareholder Approval And Completes Merger With The Mack Company And Patriot American Office Group.CRANFORD, N.J.--(BUSINESS WIRE)--Dec. 12, 1997-- --Board Restructured, New Independent Directors Appointed-- --Company Renamed Mack-Cali Realty Corporation-- Cali Realty Corp. (NYSE NYSE See: New York Stock Exchange : CLI (1) (Call Level Interface) A database programming interface from the SQL Access Group (SAG), an SQL membership organization. SAG's CLI is an attempt to standardize the SQL language for database access. ) today announced, following a special meeting of shareholders, that it received shareholder approval of its merger with the Mack Company and Patriot American Office Group. Immediately following approval, the company completed the $1.2 billion transaction, which was structured as an acquisition. The combined company, renamed Mack-Cali Realty Corp. ranks as one of the country's largest REITs with a total market capitalization Total Market Capitalization The total market value of all of a firm's outstanding securities. of approximately $3.4 billion. Commenting on today's announcement, Thomas A. Rizk, Chief Executive Officer of Mack-Cali, said, "Today represents a new day for our company. This merger presents us with an unprecedented opportunity to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our strong collective relationships, while strengthening our super-regional status." William Mack William Mack (February 29 1828 – December 11 1897) was an Ontario businessman and political figure. He represented Cornwall from 1879 to 1883, Cornwall and Stormont from 1886 to 1890 and Stormont from 1890 to 1894 in the Legislative Assembly of Ontario as a Liberal member. , who was appointed a Director and Chairman of the Executive Committee of Mack-Cali, stated, "Today, we are excited to officially join with Cali, whose great success has paralleled our own. My brothers and I strongly believe the combined Mack-Cali organization is well positioned to become one of the preeminent companies in the real estate industry." Highlights of the transaction include: -- The addition of 54 office properties totaling 9.2 million square feet, primarily in the Northeast and Southwest, for a combined portfolio of 187 properties totaling approximately 21.6 million square feet of office, office/flex and industrial/warehouse space, located in 10 states. -- A strengthened management team, combining the talents of well-respected real estate leaders William Mack, Thomas A. Rizk, Mitchell Hersh, and John J. Cali. -- The addition of 1,000 tenants for a combined tenant base of approximately 2,200 businesses. -- A dominant presence in the Northeast, with over 17 million square feet of space, and strategic beachheads in the Southwest, with approximately 3 million square feet in Texas and Arizona. -- An increase market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. , to $3.4 billion, ranking Mack-Cali as one of the country's largest REITs. -- Enhanced opportunities for growth due to geographic diversity, an improved network of relationships, and the increased size and scope of the company. Integration Complete In keeping with its philosophy of full integration before completing transactions, the company reported that property services and accounting and information management systems have been fully integrated. Mitchell Hersh, the new president and COO of Mack-Cali, commented, "Since the announcement of this transaction, we have stressed the importance of full and complete integration. I personally have spent the last several months working closely with Tom Rizk and his team to ensure a smooth transition so we are fully prepared to hit the ground running. We have already targeted several exciting transactions that will demonstrate Mack-Cali's strategy of capitalizing on our combined network of relationships and growth opportunities." Company Restructures Board In conjunction with the completion of the merger, the company also announced that it has restructured its board of directors, which now consists of 13 members. The new Mack-Cali board consists of two Cali representatives: John J. Cali, who remains as chairman, and Thomas A. Rizk; Robert F. Weinberg, a representative from the Robert Martin Robert J. Martin (born January 13, 1947) is an American Republican Party politician, who has served as a member of the New Jersey State Senate since 1993, where he represents the 26th Legislative District. Company, which merged into Cali in January 1997; three Mack representatives: William Mack, Earle Mack Earle Thaddeus Mack, born Earle Thaddeus McGillicuddy (February 1 1890 - February 4 1967), was an American player and coach in Major League Baseball, and, during parts of two seasons, manager of the Philadelphia Athletics when his father, Connie Mack, was too ill to manage. and Mitchell Hersh; three of Cali's current independent board members: Brendan T. Byrne, Alan G. Philibosian and Irvin D. Reid; and four new independent board members: Martin D. Gruss, Senior partner of Gruss & Co., Jeffrey B. Lane, Vice Chairman of the Travelers Group, Paul A. Nussbaum Chairman and Chief Executive Officer of Patriot American Hospitality, and Vincent Tese, Chairman of Wireless Cable International. Commenting on the new board, Mr. Rizk added, "We're very pleased about our new board additions and welcome their wealth of expertise and business acumen to the Mack-Cali team." Mack-Cali Realty Corporation is a fully integrated, self-administered, self-managed real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) providing leasing, management, acquisition, development, construction and tenant-related services for its portfolio. The Company owns 187 properties, primarily office and office/flex buildings, totaling approximately 21.6 million square feet. The properties are located in 10 states, primarily in the Northeast and Southwest. Additional information on Mack-Cali Realty Corporation is available on the Company's Web site at http://www.mack-cali.com. -0- Certain information discussed in this press release may constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Federal Securities law. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that its expectations will be achieved. Forward-looking information is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those projected. Among those risks, trends and uncertainties are the general economic climate; the supply of and demand for office, office/flex and industrial/warehouse properties; interest rate levels; the availability of financing; and other risks associated with the development and acquisition of properties, including risks that the development may not be completed on schedule, that the tenants will not take occupancy or pay rent, or that development or operating costs operating costs npl → gastos mpl operacionales may be greater than anticipated. For further information on factors which could impact the Company and the statements contained herein, reference should be made to the Company's filings with the Securities and Exchange Commission including quarterly reports on Form 10-Q Form 10-Q See 10-Q. , reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and annual reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. . CONTACT: Mack-Cali Realty, Cranford Barry Lefkowitz, 908/272-8000 or Edelman Financial, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Darren Brandt/Stefanie King 212/704-4449/8291 |
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