MMPI says it's ‘business as usual' at High Point properties

Existing management remains in place

Gary Evans -- Furniture Today, July 29, 2010

CHICAGO — Merchandise Market Properties Inc. said today that business will go on as usual at its market properties in High Point, as it continues to manage one of the largest exhibition complexes at the High Point Market.

In a statement from its headquarters in Chicago, MMPI was responding to a Wall Street Journal report Tuesday that its owner, Vornado Realty Trust, one of the country's largest landlords, was walking away from its $191 million mortgage on the properties. The company was putting the properties in the hands of servicer J.E. Roberts Cos. to find another buyer, the report said.

MMPI manages more than 2 million square feet of exhibition space in High Point, including Market Square, Furniture Plaza, the National Furniture Mart, Plaza Suites and other properties.

Vornado opted to forfeit the property after missing three payments on its mortgage and turn it over to the servicer in a deed-in-lieu of foreclosure. The servicer would look for a buyer, a task that might prove difficult in the current environment, the report said.

MMPI issued this statement:

"In light of recent media coverage of MMPI High Point, we think it is important to reiterate our continuing presence of MMPI's commitment as property manager in High Point. It is unclear what did prompt the current coverage, which is a recast of a three-month-old story.

"For MMPI, it is simply business as usual. There has been no change in our best-in-class management team, our staff or our operations. There is no change in how we manage our business, the way we market our events, and the dedication we have to delivering value to our tenants and the successful markets."

"Recent successes and investments by MMPI in High Point's leadership of the home furnishings industry typify our commitment and point to a great future for our High Point properties. This includes the renewal and expansion of existing tenants, attracting new tenants to our properties, the successful April 2010 market where we showcased our investment and launch of the Suites at Market Square, and our continued investment and planning under way for the October 2010 market.

"MMPI remains highly responsible business partners with our customers and industry colleagues. MMPI has always acted responsibly both in High Point and across all our properties. We continue to work one-on-one with our showrooms and exhibitors to ensure they continue to enjoy the exceptional support and service that is our standard MMPI properties and events.

"Most immediately, MMPI is focused on a successful October market, and future markets, and we invite you to focus with us on this business."