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Interest in The Trump International Hotel & Tower Chicago for $73 million; The 90-story Tower Has Pre-sold $500 million in Condo-Hotel Units |
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| CHICAGO, June 24, 2004 - Donald J. Trump ("Trump") and Hollinger International
Inc. (NYSE: HLR) ("Hollinger International") announced today that their
organizations have entered into an agreement in which Trump will purchase
the full interest in the real estate joint venture that is currently developing
Trump International Hotel & Tower at 401 North Wabash Street, the site
of the current headquarters for The Chicago Sun-Times. Under the
terms of the agreement, Hollinger will receive $4 million in cash with
the balance of $69 million in cash received at closing, for a total of
$73 million for the property and its stake in the joint venture.
The transaction is expected to close shortly after The Sun-Times completes its relocation to a new headquarters building, which is anticipated to be in the beginning of September 2004. Trump will then take full ownership of the highly anticipated project to be built along the Chicago River just off of Michigan Avenue.
Sales for Trump International Hotel & Tower have set records since the project was announced in September 2003, with nearly $500 million worth of units sold prior to the start of construction. The 2.6 million square foot, 90-story tower has 461 residences and 227 hotel condominiums, in addition to a 60,000 square foot health club and spa, two ballrooms, a conference center, retail shops, over 1,000 indoor parking spaces and a 1.2 acre riverwalk park. Hollinger International said that the transaction, when completed, will result in a pre-tax gain of approximately $37.5 million. Gordon Paris, Interim Chairman and Chief Executive Officer of Hollinger International, said, "The sale of our interest in this project to Trump is an important step forward in ensuring that we maximize value for all of Hollinger International's shareholders. This agreement marks a strong return on the investment that our Company has made in this project, and more than fully reflects the value of the prime real estate that The Sun-Times currently occupies. We wish Mr. Trump and his organization continued success in this exciting enterprise." John Cruickshank, Chief Operating Officer of Hollinger International's Chicago Group and Publisher of The Chicago Sun-Times, said, "This is a good result for everyone at The Sun-Times, and it will allow us to devote all of our attention to publishing our papers. We look forward to moving into our new space at 350 North Orleans, and we expect the transition to go smoothly." Hollinger International Inc. is a global newspaper publisher with English-language newspapers in the United States, Great Britain, and Israel. Its assets include The Daily Telegraph, The Sunday Telegraph and The Spectator magazine in Great Britain, The Chicago Sun-Times and a large number of community newspapers in the Chicago area, The Jerusalem Post and The International Jerusalem Post in Israel, a portfolio of new media investments and a variety of other assets. Donald J. Trump established The Trump Corporation in 1974 as the umbrella organization for all of his real estate developments and other corporate affiliates. No other real estate company has established the international brand identity that Trump has created. In addition to being the largest developer in New York, Mr. Trump is currently developing residential, hotel and golf club projects in Miami, Los Angeles, Westchester, Toronto, Phoenix, Las Vegas, the Caribbean and Bedminster, NJ. Certain statements made in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). |
| Contact:
Hollinger International
The Trump Organization
|
Donald
J. Trump, Chief Executive Officer of The Trump Organization, said, "It
has been a great honor to have been partners with Hollinger International.
As we move forward, I want to thank them for their contributions in making
this project a great success. I am truly excited by the opportunity
to develop a building in Chicago with such a great location, world-class
design by Skidmore Owings & Merrill, and the best in amenities.
When completed, Trump International Hotel & Tower will be one of the
finest buildings anywhere in the world, in what is long considered to be
the best location in Chicago."