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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 8)
-----------------------
KONOVER PROPERTY TRUST, INC.
(formerly known as FAC Realty Trust, Inc.)
(Name of Issuer)
COMMON STOCK, PAR VALUE $0.01 PER SHARE
(Title of Class of Securities)
301953 10 5
(CUSIP Number)
MARJORIE L. REIFENBERG, ESQ.
LAZARD FRERES REAL ESTATE INVESTORS L.L.C.
30 ROCKEFELLER PLAZA
NEW YORK, NY 10020
(212) 632-6000
WITH A COPY TO:
TOBY S. MYERSON, ESQ.
PAUL, WEISS, RIFKIND, WHARTON & GARRISON
1285 AVENUE OF THE AMERICAS
NEW YORK, NEW YORK 10019-6064
(212) 373-3000
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
-----------------------
May 22, 2002
(Date of Event which Requires Filing
of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(e), 1(f) or 1(g), check the following box [_].
Note: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits. See Rule 13d-1(a) for other
parties to whom copies are to be sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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Page 2
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Prometheus Southeast Retail Trust
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Maryland
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
00 (real estate investment trust)
--------------------------------------------------------------------------------
Page 3
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Prometheus Southeast Retail L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
00 (limited liability company)
--------------------------------------------------------------------------------
Page 4
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LFSRI II SPV REIT Corp.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
CO
--------------------------------------------------------------------------------
Page 5
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LF Strategic Realty Investors II L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN (limited partnership)
--------------------------------------------------------------------------------
Page 6
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LFSRI II Alternative Partnership L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN (limited partnership)
--------------------------------------------------------------------------------
Page 7
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
LFSRI II-CADIM Alternative Partnership L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
PN (limited partnership)
--------------------------------------------------------------------------------
Page 8
--------------------------------------------------------------------------------
NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lazard Freres Real Estate Investors L.L.C.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
00 (limited liability company)
--------------------------------------------------------------------------------
Page 9
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NAME OF REPORTING PERSON
1 S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Lazard Freres & Co. LLC
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (a) [_]
(b) [X]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS
AF
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO
ITEMS 2(d) or 2(e)
[_]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
New York
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
NUMBER OF
SHARES None
BENEFICIALLY OWNED BY EACH
REPORTING
PERSON
WITH
------------------------------------------------
8 SHARED VOTING POWER
21,052,631
------------------------------------------------
9 SOLE DISPOSITIVE POWER
None
------------------------------------------------
10 SHARED DISPOSITIVE POWER
21,052,631
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
21,052,631
--------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES
[_]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
66.0%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON
OO (limited liability company)
--------------------------------------------------------------------------------
Page 10
This Amendment No. 8, dated May 22, 2002, is filed by Prometheus
Southeast Retail Trust, a Maryland real estate investment trust ("Trust"),
Prometheus Southeast Retail LLC, a Delaware limited liability Company
("Prometheus"), LFSRI II SPV REIT Corp., a Delaware corporation ("SPV"), LF
Strategic Realty Investors II L.P., a Delaware limited partnership ("LFSRI II"),
LFSRI II Alternative Partnership L.P., a Delaware limited partnership
("Alternative"), LFSRI II-CADIM Alternative Partnership L.P., a Delaware limited
partnership ("CADIM"), Lazard Freres Real Estate Investors L.L.C., a New York
limited liability company ("LFREI"), and Lazard Freres & Co. LLC, a New York
limited liability company ("Lazard," and together with Trust, Prometheus, SPV,
CADIM, Alternative, LFSRI II and LFREI, the "Reporting Persons").
Capitalized terms used herein but not defined shall have the meanings
ascribed thereto in the Schedule 13D dated March 6, 1998, as amended, filed by
Prometheus and LFSRI II (as amended, the "Existing Schedule 13D"). This
Amendment hereby amends and supplements the Existing Schedule 13D as follows:
ITEM 1. SECURITY AND ISSUER.
No change.
ITEM 2. IDENTITY AND BACKGROUND.
No change.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
No change.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 is hereby amended and supplemented by the addition of the
following:
On May 22, 2002, at the request of the Special Committee (the "Special
Committee") of the Board of Directors of the Company, the Trust, on behalf of
iteself and Kimco Realty Corporation, a Maryland corporation ("Kimco"),
delivered a modified proposal (as modified, the "Revised Proposal") to the
Special Committee (a copy of which is attached as an exhibit hereto and
incorporated herein by reference) pursuant to which the Trust and Kimco
increased the merger consideration proposed to be paid to the Company's
stockholders. Except for the increase in the merger consideration, the terms and
conditions of the proposal set forth in the letter, dated May 17, 2002, from the
Trust and Kimco to the Special Committee (the "May 17 Proposal"), remained
unchanged.
Page 11
Pursuant to the Revised Proposal (and subject to the other terms and
conditions contained in the May 17 Proposal), in the proposed merger transaction
(the "Transaction"), the holders of the Company's common stock would receive
$1.95 per share ("Cash Price") in cash in exchange for their shares of common
stock in the Company, and the holders of the Company's Series A Convertible
Preferred Stock would be given the opportunity to elect to receive in the
Transaction either (x) a new preferred security representing a continuing
interest in the Company or (y) 105% of the Cash Price multiplied by the number
of shares of common stock issuable upon conversion of such holder's shares of
Series A Convertible Preferred Stock.
Except as set forth above, the Reporting Persons have no present plans
or intentions that would result in any of the matters required to be set forth
in items (a) through (j) of Item 4 of Schedule 13D.
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
No change.
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR
RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER.
No change.
ITEM 7. MATERIAL TO BE FILED AS EXHIBITS.
1. Letter dated May 22, 2002 from Prometheus Southeast Retail Trust to
Special Committee of the Board of Directors of Konover Property Trust,
Inc.
Page 12
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated as of May 22, 2002
PROMETHEUS SOUTHEAST RETAIL TRUST
By: /s/ John A. Moore
---------------------------------------
Name: John A. Moore
Title: Vice President and Chief
Financial Officer
PROMETHEUS SOUTHEAST RETAIL L.L.C.
By: LFSRI II SPV REIT Corp.
as managing member
By: /s/ John A. Moore
-----------------------------------
Name: John A. Moore
Title: Vice President and Chief
Financial Officer
LFSRI II SPV REIT CORP.
By: /s/ John A. Moore
---------------------------------------
Name: John A. Moore
Title: Vice President and Chief
Financial Officer
LF STRATEGIC REALTY INVESTORS II L.P.
By:Lazard Freres Real Estate Investors L.L.C.
as general partner
By: /s/ John A. Moore
-----------------------------------
Name: John A. Moore
Title: Managing Principal and
Chief Financial Officer
Page 13
LFSRI II ALTERNATIVE PARTNERSHIP L.P.
By:Lazard Freres Real Estate Investors L.L.C.
as general partner
By: /s/ John A. Moore
-----------------------------------
Name: John A. Moore
Title: Managing Principal and
Chief Financial Officer
LFSRI II-CADIM ALTERNATIVE PARTNERSHIP L.P.
By:Lazard Freres Real Estate Investors L.L.C.
as general partner
By: /s/ John A. Moore
-----------------------------------
Name: John A. Moore
Title: Managing Principal and
Chief Financial Officer
LAZARD FRERES REAL ESTATE INVESTORS L.L.C.
By: /s/ John A. Moore
---------------------------------------
Name: John A. Moore
Title: Managing Principal and
Chief Financial Officer
LAZARD FRERES & CO. LLC
By: /s/ Matthew J. Lustig
---------------------------------------
Name: Matthew J. Lustig
Title: Managing Director