Saturday, October 07, 2006

United Western Bancorp Completes $27 Million Sale Leaseback of Denver HQ

United Western Bancorp Web Site - October 4, 2006

United Western Bancorp, Inc. (NASDAQ: UWBK) through its subsidiary, Matrix Tower Holdings, LLC, has completed the sale of United Western Financial Center (formerly known as Matrix Financial Center), its high-rise headquarters building in downtown Denver, for a purchase price of $27,250,000.00.

In connection with the sale, the Company and the Company’s wholly owned subsidiary, United Western Bank (formerly known as Matrix Capital Bank), agreed to lease back an aggregate of approximately 62,487 square feet of office space in the building for a term of 10 years. In addition, the Company will guarantee certain third-party lease obligations on approximately 23,171 square feet of office space for 10 years (such third parties being former subsidiaries of the Company).

It is expected that the sale-leaseback transaction will result in an economic gain to the Company of pproximately $11.1 million pre-tax. It is expected that the Company will recognize the gain at a rate of approximately $1.1 million annually, pre-tax, as a reduction in its lease expense over the 10-year term of the lease in accordance with FASB Statement No. 98. Sphere: Related Content

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