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TRANSCONTINENTAL REALTY INVESTORS, INC. ANNOUNCES ASSET AND SHARE PURCHASE

 TRANSCONTINENTAL REALTY INVESTORS, INC.
 ANNOUNCES ASSET AND SHARE PURCHASE
 DALLAS, Sept. 21 /PRNewswire/ -- Transcontinental Realty Investors, Inc. (NYSE: TCI) today announced the purchase of 170,750 shares of Income Opportunity Realty Trust (AMEX: IOT) and 140,656 of its own shares. Transcontinental also purchased a 40.2 percent interest in Tri- City Limited Partnership, a partnership which owns three Texas shopping centers and two apartment properties. The share purchases equal 19.8 percent of the outstanding IOT shares and 4.6 percent of Transcontinental's outstanding shares. The seller is F.C. MacArthur, Inc., to whom the shares were issued in exchange for the aggregate 59.8 percent interest in Tri-City already acquired by IOT and Transcontinental in 1989. Transcontinental has agreed to pay a total of $7.25 million for the assets over the next several months. The down payment of $500,000 was made Sept. 18, 1992.
 In connection with this asset purchase, Transcontinental and IOT will each be relieved of a contingent obligation to repurchase their respective shares from F.C. MacArthur for $4 million and $6 million, respectively. As a result of the relief from this contingent obligation, the book value of IOT will increase approximately $6 per share and Transcontinental's book value will increase by $1 per share. The Transcontinental shares acquired will be retired. Transcontinental intends to hold the IOT shares as an investment.
 "This transaction is one of those rare occasions when all parties involved benefit," said a spokesperson for Income Opportunity and Transcontinental. "It removes a contingent obligation from the two trusts, thereby increasing shareholders' equity while allowing TCI to increase its ownership in these attractive properties. The sale gives F.C. MacArthur liquidity for these non-controlling investments."
 Transcontinental Realty Investors, Inc. and Income Opportunity Realty Trust are equity and mortgage real estate investment trusts which operate nationwide.
 -0- 9/21/92
 /CONTACT: Jean Krone Bono, investor relations of National Realty Advisors, 214-692-4800/
 (TCI) CO: Transcontinental Realty Investors, Inc. ST: Texas IN: FIN SU:


AH -- NY032 -- 1569 09/21/92 10:17 EDT
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Publication:PR Newswire
Date:Sep 21, 1992
Words:340
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