GE Real Estate Completes $2.2B Acquisition of a Diversified Portfolio Comprising 147 Assets From Crow Holdings

    DALLAS, Jan. 15 /PRNewswire/ -- GE Real Estate ( 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 ( 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 ( http://www.gerealestate.com ) 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 ( http://www.gecommercialfinance.com ) 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 ( GE), a diversified
 services, technology and manufacturing company with operations worldwide.
     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.
 
 

SOURCE GE Real Estate