SFBC International, East Bay settle land-lease lawsuit

By Elaine Rigoli

Tampa, Fla., July 24 - SFBC International, Inc. and East Bay Corp. have reached a settlement agreement for all pending litigation regarding a land lease at SFBC's Miami facility.

East Bay had filed a lawsuit against SFBC for violation of a 99-year lease after SFBC moved its corporate headquarters to New Jersey in January.

The terms of the settlement include the cancellation of the existing land lease. Additionally, if East Bay's parcel is sold or re-leased to a third party anytime within the next four years, SFBC will receive 6% of East Bay's net proceeds, according to a news release.

This settlement does not impact the adjacent parcel of land SFBC acquired in the first quarter of 2005. Including this adjacent parcel of land, SFBC owns about 56% of the land area at 11190 Biscayne Blvd., where the company's Miami facility is located.

East Bay continues to own the remaining 44%, the release said.

As previously disclosed, SFBC said it expects to sell its land on Biscayne Boulevard.

Based upon estimated current market prices and current zoning, the value of SFBC's land owned at this location combined with the company's former Miami-area building, which is for sale, is estimated to be $9 million to $12 million.

As required under the existing covenants of the company's credit facility, any proceeds received from the sale of these properties in excess of $500,000 will be used to pay down the amount outstanding under the company's credit facility.

SFBC International is a drug-development services company based in Princeton, N.J.

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