GE Real Estate Completes $2.2B Acquisition of a Diversified Portfolio Comprising 147 Assets From Crow Holdings |
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By: GE Real Estate Posted: 2007-01-15 22:37:59 |
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GE Real Estate (NYSE: GE) announced today the completion of its acquisition of a portfolio comprising 147 assets from Crow Holdings' third real estate fund, Crow Holdings Realty Partners III, L.P. ("Fund III") for $2.2 Billion. The diversified portfolio is comprised of 112 industrial buildings (9.3 million square feet), 19 retail centers (3.6 million square feet), 8 multi-family properties (3,141 units), 6 hotels (1,727 rooms) and 2 office buildings (350,000 square feet). The properties are geographically dispersed across the U.S.
As previously announced, Kimco Realty Corporation (NYSE: KIM) purchased the 19 retail centers in connection with this transaction for approximately $920 million. "We invest where there are excellent opportunities for growth, both in asset value and portfolio size. This transaction brings us a very large, high quality portfolio of real estate assets that lifts our presence in a number of sectors and markets," commented Joe Parsons, President, North America Equity at GE Real Estate. "This deal provides GE Real Estate with the opportunity to work with Crow Holdings on a transaction that creates positive results for both parties. We see continued opportunities to expand our relationship with Crow over the near-term." In an effort to take advantage of the strong investment sales market, Crow Holdings engaged CB Richard Ellis and Holliday Fenoglio Fowler last April to explore strategic options for Fund III, including the possible sale of the entire portfolio. "Our goal is to continually be flexible and opportunistic, capitalizing on windows of opportunity whenever possible," states Bob McClain, head of Crow Holdings' real estate group. "We believe it was the appropriate time to sell this portfolio, further solidifying our commitment to provide the best risk adjusted returns possible to our partners." Today, Crow Holdings is actively investing its fourth private equity fund, Crow Holdings Realty Partners IV, L.P. ("Fund IV"), which has total capital commitments of approximately $850 million, including a $150 million commitment by Crow Holdings. This equity will be leveraged to acquire more than $2.8 billion in properties. Consistent with prior funds, Fund IV will invest across all property types throughout the U.S. To date, Fund IV has committed approximately 40% of its equity. "While the recent Fund III sale is a significant transaction for our company and our limited partners, we remain committed to making new investments in real estate and look forward to continuing in the fund business," states Harlan Crow, Chairman and CEO of Crow Holdings. "Given Fund IV's placement pace, we expect to begin marketing Fund V as early as next year." GE Real Estate is a leading global resource for commercial real estate capital. Crow Holdings is the diversified group of entities that owns and directs the investments of the Trammell Crow family and its investment partners. Notes to editors: About GE Real Estate GE Real Estate is one of the world's premier commercial real estate companies with US$49 billion in assets and a presence in 24 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 26% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide. GE Commercial Finance offers businesses around the globe an extensive array of financial products and services. With over US$215 billion in assets and expertise in the middle- market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company (NYSE: GE), a diversified services, technology and manufacturing company with operations worldwide. About Crow Holdings Crow Holdings is a privately held firm based in Dallas, Texas that makes investments on behalf of the Trammell Crow family and its investment partners. Today, Crow Holdings has a substantial stake in the ownership of various businesses, both real estate and non-real estate related, with a level of involvement in the management of these companies that ranges from active to passive. Their holdings also include significant, diversified positions in financial investments. |
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