1st Union REIT, FUR Report Stock Pact

First Union Real Estate Equity and Mortgage Investments and FUR Investors LLC have announced a stock purchase agreement under which FUR will buy at least 5 million common shares from the real estate investment trust for $2.60 per share.As part of the transaction, FUR will commence a tender offer to buy up to 5 million common shares at $2.30 per share. If the tender offer is not fully subscribed, First Union said it will increase the number of shares to be issued to FUR by the amount of the deficiency, up to a maximum of 5,185,724 shares. As part of the transaction, Michael L. Ashner will become president and chief executive officer of First Union, and an affiliate of Mr. Ashner will provide asset management and general advisory services under an arm's-length agreement, the company said. Mr. Ashner is a real estate investor who controls FUR Investors.