Under Cornerstone Banner, Will Be One of World's Largest Real Estate Investment Advisory Firms by Assets

HARTFORD, Conn., Nov. 19 /PRNewswire/ -- Cornerstone Real Estate Advisers LLC and Babson Capital Management LLC announced today that they will integrate Babson Capital's Real Estate Finance Group (REFG) into Cornerstone effective in the first quarter of 2010. The newly expanded Cornerstone will become a subsidiary of Babson Capital Management LLC. Additionally, Cornerstone announced its pending acquisition, subject to certain approvals, of London-based Protego Real Estate Investors LLP, Protego Real Estate Investors Finance LLP and their subsidiaries (Protego), which establishes Cornerstone's presence in the European market. With these moves, Cornerstone will become one of the world's largest real estate investment advisors.(1)

Cornerstone will now have a full service, global real estate investment organization with capabilities in public and private debt and equity. The global organization will have offices in the US, UK, Europe and Asia with a combined staff of approximately 250 people and $30 billion of assets managed and serviced.

"Our new organization will allow us to participate across the entire real estate capital spectrum and best serve our clients with a full complement of debt, equity and real estate securities expertise," said Cornerstone President and CEO David J. Reilly. "As the global marketplace rapidly continues to evolve, we will be well-positioned to satisfy the demands of investors for more comprehensive and creative public and private real estate finance and equity products."

Babson Capital's REFG specializes in commercial mortgage lending and related products, has $21 billion(2) in assets managed and serviced, and employs approximately 100 people in offices throughout the United States. Robert F. Little, who currently heads REFG, will continue to lead the debt business reporting to Reilly as Chief Investment Officer - Finance and as a senior member of Cornerstone's management team.

"The Cornerstone and Babson Capital real estate teams have a history of working together to serve clients including our parent MassMutual," said Little. "By teaming up under the Cornerstone brand, we will continue to build a world-class platform for institutional real estate investors."

Complementing its integration of Babson Capital's real estate business, Cornerstone's pending acquisition of Protego expands the company's global reach. Protego, a privately-held, U.K.-based real estate investment firm, has approximately $2.5 billion of assets managed and serviced(3), 31 employees, and offices in London, Rotterdam, and Stockholm. Primarily focused on office, retail, and industrial property, the firm provides real estate investment advisory services to a variety of clients through funds and separate accounts.

"Protego has grown rapidly since its creation five years ago as demand for real estate investment expertise has grown among institutional and wealth management clients," said Protego CEO Iain Reid. "Protego as a subsidiary of Cornerstone will be able to bring a wider and more integrated array of investment opportunities to our global clients as well as expand the Cornerstone platform to include the European marketplace."

"The Cornerstone, Babson Capital REFG and Protego teams all share a common goal of providing core and value-added investment and advisory services to institutional and other qualified investors," said Thomas M. Finke, Chairman and CEO of Babson Capital and Chairman of Cornerstone. "The integration of these real estate entities enhances our ability to achieve this common goal and will lead to a broader and more comprehensive, seamless approach to real estate investment."

(1) As measured by assets managed and serviced according to Pensions & Investments annual ranking, published Oct. 19, 2009. See: http://www.pionline.com/apps/pbcs.dll/section?djoPage=view_html&category=datajoe&pgTitle=Real+estate&djoPid=901&djoYear=2009&djoPgTitle=Real+estate+2009-Largest+

(2) As of September 30, 2009.

(3) As of September 30, 2009.

    Contact: Patrick Collins
    617-553-0349
    pcollins@madisoncommunications.com

    Kathleen Gilroy
    978-358-7282
    kgilroy@madisoncommunications.com

SOURCE Cornerstone Real Estate Advisers

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