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SIERRA REAL ESTATE EQUITY TRUST '84 ELECTION SURPRISES INCUMBENT DIRECTORS; BALLOTS TO BE INSPECTED

 SIERRA REAL ESTATE EQUITY TRUST '84 ELECTION SURPRISES
 INCUMBENT DIRECTORS; BALLOTS TO BE INSPECTED
 SAN FRANCISCO, Dec. 5 /PRNewswire/ -- Angry shareholders of the beleaguered Sierra Real Estate Equity Trust '84 have demonstrated their disapproval of the way in which their investments have been managed by voting against the trust's incumbent directors, a preliminary tally of returned proxies disclosed Thursday (Dec. 5, 1991). Of those casting votes, 28.5 percent voted against the re-election of the current board of trustees.
 In addition, another 16.5 percent wrote in the name of Arthur Dann, the trust's largest shareholder with 85,100 shares, who has filed a federal lawsuit against the trust's management alleging fraud and mismanagement. The rest of the proxies were voted by brokers who traditionally vote for existing management.
 Despite the absence of an alternative slate of officers, shareholders took the unusual and severe step of rebuking the trust's current management through the large number of "No" votes and the unsolicited write-in votes cast for Dann.
 In light of this vote, and at the adamant request of Dann's attorney, the board of trustees also has reluctantly agreed to allow for an independent inspection of its proxy election.
 According to the results of the proxy election, the trust's current slate of five trustees was barely re-elected with just 51 percent of shareholders even bothering to vote.
 During the trust's annual meeting last week, officers had publicly claimed they held more than 75 percent of the proxies, hinting that any threat to unseat them would easily be turned back. However, final tallies showed that of the ballots returned, barely a majority returned their proxies and nearly 30 percent of the shareholders voted against the current slate of officers, indicating a lack of confidence in their ability to manage the trust.
 According to attorney Phyllis Andelin, partner in the law firm of Proskauer Rose Goetz & Mendelsohn in San Francisco, which represents Dann, the independent inspection of ballots was requested to certify the results and determine how many proxies were voted by brokers.
 Price of the heavily marketed REIT stock has plummeted from $10 per share to less than $.50 in the past three years. Most investors hold an average of 700 shares that were purchased for individual retirement accounts (IRAs) and other pension plans.
 Dann, who has filed a federal lawsuit against the trust and its officers, has claimed he and other shareholders were defrauded and that the value of the trust's property holdings has declined through mismanagement and incompetence. He has moved for a receiver and a trial will be scheduled early next year.
 -0- 12/5/91
 /CONTACT: Keith Karpe or Dick Lewis of Lewis & Associates, 213-739-1000/ CO: Sierra Real Estate Equity Trust ST: California IN: SU:


EH-CH -- LA028 -- 9871 12/05/91 17:21 EST
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Publication:PR Newswire
Date:Dec 5, 1991
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