Crow Holdings to Sell Diversified Portfolio of 147 Assets to GE Real Estate for $2.2B
September 27 2006 - 7:00AM
PR Newswire (US)
DALLAS, Sept. 27 /PRNewswire/ -- Crow Holdings announced today an
agreement to sell 147 assets from its third real estate fund, Crow
Holdings Realty Partners III, L.P. ("Fund III") to GE Real Estate
for $2.2 Billion. The transaction is subject to customary
conditions and is expected to be closed by the end of the year.
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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. Separately, GE Real
Estate entered into an agreement with Kimco Realty Corporation
under which Kimco will acquire the 19 retail centers for
approximately $920 million. Building on its long history and
expertise in the real estate industry, Crow Holdings began
sponsoring commingled real estate private equity funds in 1998. In
October 2003, Crow Holdings launched its third fund with total
commitments of approximately $600 million, including a $150 million
commitment by Crow Holdings. Over a 29-month period, this equity
was invested in 50 different transactions to create a
well-diversified portfolio by property type and geographic
location. Crow Holdings began exploring the idea of a
recapitalization earlier this year given market conditions and the
tremendous volume of capital seeking strong, diversified
portfolios. "We believe it was in the best interests of our
partners to capitalize on today's attractive investment sales
market and generate very strong returns for our partners," stated
Bob McClain, head of Crow Holdings' real estate group. "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 American 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." The brokers representing Crow Holdings on the
transaction were Mark Gibson and Jody Thornton of Holliday Fenoglio
Fowler and Jack Fraker and Bill Kent with CB Richard Ellis. Crow
Holdings is actively investing Crow Holdings Realty Partners IV,
L.P. ("Fund IV"), which held its final closing in April 2006. Fund
IV has total capital commitments of approximately $850 million,
including Crow Holdings' commitment of $150 million. 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 United States. To date, Fund IV has
committed approximately 23% of its equity. Crow Holdings is the
diversified group of entities that owns and directs the investments
of the Trammell Crow family and its investment partners. GE Real
Estate is a leading global resource for commercial real estate
capital. Crow Holdings Contact: Dani Gastner 214-661-8345 GE
Contact: Brent Feigenbaum 203/585-0810 HLB Communications, Inc.
Pamela Flores 312/649-0371 Note to editors: About Crow Holdings
Crow Holdings (http://www.crowholdings.com/) 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. The
company currently oversees a portfolio of over 19 million square
feet of retail, industrial and office properties, approximately
33,000 multi-family units and more than 6,100 hotel rooms. About GE
Real Estate GE Real Estate (http://www.gerealestate.com/) is one of
the world's premier commercial real estate companies with USD44
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
(http://www.gecommercialfinance.com/) offers businesses around the
globe an extensive array of financial products and services. With
over US$206 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.
http://www.newscom.com/cgi-bin/prnh/20060908/NYF105LOGO-a
http://photoarchive.ap.org/ DATASOURCE: Crow Holdings CONTACT: Dani
Gastner of Crow Holdings, +1-214-661-8345, ; or Brent Feigenbaum of
GE, +1-203-585-0810, ; or Pamela Flores of HLB Communications,
Inc., +1-312-649-0371, , for Crow Holdings Web site:
http://www.kimcorealty.com/ http://www.crowholdings.com/
http://www.gerealestate.com/ http://www.gecommercialfinance.com/
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