Ramco-Gershenson Properties Trust Forms $125 Million Acquisition Joint Venture With Investcorp

Aug 31, 1999, 01:00 ET from Ramco-Gershenson Properties Trust

    SOUTHFIELD, Mich., Aug. 31 /PRNewswire/ -- Ramco-Gershenson Properties
 Trust (NYSE:   RPT) announced today that it has entered into a joint venture
 with an affiliate of Investcorp International, Inc. ("Investcorp").  The
 purpose of the joint venture is to acquire existing shopping centers totaling
 $125 million, which present value-added opportunities.  The joint venture will
 target well-located centers, greater than 100,000 square feet in the Mid-West,
 Mid-Atlantic and Northeast United States.
     Under the terms of the joint venture, which is structured as a Limited
 Liability Company, Investcorp will own 75% of the equity and RPT will own 25%.
 The anticipated property leverage is approximately 70%.  In addition,
 Ramco-Gershenson, Inc., a subsidiary of Ramco-Gershenson Properties Trust, has
 been retained for asset management, property management and leasing based on
 agreements with the joint venture and will also be responsible for the
 identification of potential acquisitions.  The joint venture between RPT and
 Investcorp was arranged by the Real Estate Investment Banking Group of
 Deutsche Banc Alex Brown.
     "We are pleased to participate in a joint venture with a company that is
 both a knowledgeable  real estate owner and whose focus on asset management
 and value creation is aligned with ours," said Dennis Gershenson, RPT's
 president and chief executive officer.  "This transaction will allow us to
 continue to actively pursue value added acquisitions, reduce our leverage and
 utilize our management team to achieve what we expect to be an outstanding
 return on our investment.  I look forward to a mutually beneficial
 relationship and the positive, long term effects it will provide our
     Upon closing, the joint venture acquired two shopping centers from RPT,
 for an aggregate purchase price of approximately $31 million.  The two centers
 were Chester Springs Shopping Center, a 224,000 square foot center located in
 Chester, New Jersey and Rivertowne Square, a 137,000 square foot center
 located in Deerfield Beach, Florida.
     "We are delighted to establish this joint venture with RPT.  This
 initiative is consistent with Investcorp's strategy of generating
 opportunities for its clients through the acquisition of single assets and
 through the assemblage of multi-property, sector-specific portfolios," said
 Edward Lord, Senior Partner of Investcorp's Real Estate Group.
     Investcorp is a global investment group with offices in New York, London
 and Bahrain.  The firm focuses on three lines of business:  corporate
 investment, real estate investment and asset management.  Investcorp's team of
 real estate professionals is based in New York and has arranged over 40 real
 estate transactions with an aggregate acquisition value of approximately
 $1 billion.
     Ramco-Gershenson Properties Trust has a portfolio of 55 shopping centers,
 withapproximately 10.6 million square feet of gross leasable area, located in
 Michigan, Ohio, Wisconsin, New York, New Jersey, Maryland, Virginia, North
 Carolina, South Carolina, Tennessee, Georgia, Alabama and Florida.
 Headquartered in Southfield, Michigan, the Company is a fully integrated,
 self-administered, publicly-traded real estate investment trust (REIT).  The
 Trust owns, develops, acquires and manages community shopping centers,
 regional malls and single tenant retail properties, nationally.
     This press release contains forward-looking statements with respect to the
 operation of certain of the Trust's properties.  Management of
 Ramco-Gershenson believes the expectations reflected in the forward-looking
 statements made in this document are based on reasonable assumptions.  Certain
 factors could occur that might cause actual results to vary.  These include
 general economic conditions, the strength of key industries in the cities
 in which the Trust's properties are located, the performance of the Trust's
 tenants at the Trust's properties and elsewhere, and other factors discussed
 in the Trust's reports filed with the Securities and Exchange Commission.
     For further information on Ramco-Gershenson Properties Trust via facsimile
 at no cost, simply dial 1-800-PRO-INFO and enter the company symbol RPT.

SOURCE Ramco-Gershenson Properties Trust