CLEVELAND, Dec. 8, 2005 (PRIMEZONE) -- Paragon Real Estate Equity and Investment Trust (AMEX:PRG) announced today that it and the seller of the portfolio of ten apartment communities located in Texas and Ohio, consisting of 1,478 units, agreed to an extension of the due diligence period until December 31, 2005, with the closing to occur by January 31, 2006, and a reduction of the purchase price to $62.6 million from $64.7 million.
James C. Mastandrea, Chairman, Chief Executive Officer and President of Paragon, commented, "After signing the purchase agreement for the apartment portfolio in late September, we knew it would be challenging to close the acquisition by the end of the year, but well worth our team's effort. Although we have experienced some delays in the financing process, the seller of the apartment portfolio was willing to extend the closing date and we plan to close next month. When you have great relationships and work with great people, the deals do get accomplished."
Paragon is a real estate company with a value-added business plan to acquire well located, under-performing multifamily properties and reposition them through renovation, leasing, improved management and additional capital investment.
Forward-Looking Statements
Certain matters discussed within this press release may be deemed to be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although Paragon Real Estate Equity and Investment Trust believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that the acquisition of the Texas and Ohio properties will be closed or, if closed, that it will be on the terms described in this press release, or Paragon's planned implementation of a national real estate acquisition, development and re-development strategy will be completed in whole or in part. Factors that could cause actual results to differ materially from Paragon's expectations include changes in local or national economic or real estate conditions, the ability to retain its common share listing on the American Stock Exchange, the ability to meet competition, loss of existing key personnel, ability to hire and retain future personnel and other risks detailed from time to time in Paragon's SEC reports and filings, including its annual report on Form 10-KSB, quarterly reports on Form 10-QSB and periodic reports on Form 8-K. Paragon assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.