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GOLDEN CORRAL REALTY ENTERS INTO NEGOTIATIONS TO PURCHASE PROPERTIES FOR STOCK AT $10 PER SHARE AND RETAIN NEW ADVISER

 GOLDEN CORRAL REALTY ENTERS INTO NEGOTIATIONS TO PURCHASE PROPERTIES
 FOR STOCK AT $10 PER SHARE AND RETAIN NEW ADVISER
 RALEIGH, N.C., Nov. 20 /PRNewswire/ -- Golden Corral Realty Corporation (NASDAQ: GCRA) today announced that its Board of Directors will enter into negotiations with CNL Group, Inc., which if successful, will result in an equity investment by CNL in Golden Corral Realty at $10 per share and the transfer of management of the Company to an affiliate of CNL.
 According to Edward Clark, President of Golden Corral Realty, the proposal from CNL calls for investment by CNL of restaurant properties subject to long-term, high-quality triple net losses in return for Common Stock of Golden Corral Realty. Clark noted that Golden Corral Realty's cash flow after the proposed transaction is expected to support its current $0.27 per share quarterly dividend.
 Clark indicated that "the proposal from CNL was one of a number of proposals received by the Board in response to a solicitation on behalf of the Company by Alex. Brown & Sons Incorporated, financial adviser to the Board of Directors. After extensive consideration of the alternatives, the Board has determined to go forward with CNL."
 The proposed transaction is subject to negotiation of a definitive stock purchase agreement and to certain conditions, including approval of the definitive stock purchase agreement by Golden Corral Realty's Board of Directors and approval of certain amendments to the Certificate of Incorporation and By-laws by Golden Corral Realty's stockholders. Among other things, it is anticipated that the stockholders will be asked to approve a change in Golden Corral Realty's name. Clark emphasized that, while the Board of Directors has decided to enter into negotiations with CNL, there can be no assurance that a transaction between Golden Corral Realty and CNL, or with any other party, will ultimately be consummated.
 CNL Group, Inc. is a privately held diversified real estate investment company headquartered in Orlando, Fla. and is a major provider of sale-leaseback financing to the restaurant industry. CNL purchases properties of national and regional fast-food and family-style restaurant chains including Burger King, Denny's Restaurants, Golden Corral Family Steakhouse Restaurants, KFC, Pizza Hut, Shoney's, Taco Bell and Wendy's Old Fashioned Hamburger Restaurants. Its affiliates include both public and private real estate limited partnerships, two property management companies, two registered investment advisers and a registered broker-dealer.
 Golden Corral Realty Corporation is an equity real estate investment trust that invests solely in properties leased to Golden Corral Corporation for use as Golden Corral restaurants. Its executive offices are located in Raleigh, N.C.
 -0- 11/20/91
 /CONTACT: Edward Clark, President, Golden Corral Realty Corporation, 919-781-9310, or Anita Finkelstein, Esquire, 202-663-8269/
 (GCRA) CO: Golden Corral Realty Corporation; CNL Group, Inc. ST: North Carolina IN: SU:


DF -- CH007 -- 5430 11/20/91 12:36 EST
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Publication:PR Newswire
Date:Nov 20, 1991
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