Travelers-Tishman Speyer Real Estate Venture Closes with Over $800 Million of Initial Equity Capital

- Largest Total Equity Committed by General Partners of Any Private Real

Estate Venture -

- Venture Brings Together for First Time Institution and Private Entrepreneur

To Invest in Global Real Estate Opportunities -

- Travelers-Tishman Speyer Anticipate Venture's Total Capitalization

to Reach $3 Billion After Initial Three-Year Investment -

Nov 06, 1997, 00:00 ET from Travelers Insurance Company, Tishman Speyer Properties

    NEW YORK, Nov. 6 /PRNewswire/ -- The Travelers Insurance Company, a unit
 of Travelers Group (NYSE:   TRV), and Tishman Speyer Properties, a leading
 worldwide real estate owner, developer and manager, announced today the
 closing of their joint real estate venture with initial equity of
 $800 million, $200 million more than the amount the companies originally
 projected.  The equity committed by Travelers and Tishman Speyer represents
 the largest to date for a private venture of this kind investing in real
 estate opportunities, and all of the new real estate development and
 investment activities of Tishman Speyer will be channeled through this
     Travelers and Tishman Speyer will be general partners in the venture,
 which will be the first of its kind to blend institutional and private equity
 sponsorship, and focus on global real estate acquisitions and development
 opportunities.  The partners anticipate that the venture's total
 capitalization could grow to $3 billion after an initial three-year investment
     The venture begins with a portfolio of 15 domestic office properties and
 five domestic development sites contributed by affiliates of Travelers and
 Tishman Speyer.  Travelers is providing $420 million in real estate equity and
 $100 million in cash; and Tishman Speyer is committing $280 million in
 properties and cash.  Both companies will serve as asset managers for the
 venture and Tishman Speyer will spearhead the venture's real estate
 acquisition and development efforts.
     Sanford I. Weill, Chairman of the Board and Chief Executive Officer of
 Travelers Group, stated, "This venture is a unique marriage of private
 developer/entrepreneur and institutional capital and we believe that our
 performance will benefit from the cumulative investment, management, and
 development expertise of the Travelers and Tishman Speyer organizations.
 As one of the most successful development companies in the global arena,
 Tishman Speyer is an ideal partner for us and we look forward to building an
 excellent business that maximizes the values of the properties already in our
 portfolio and the new properties in which we will invest."
     Jerry I. Speyer, President of Tishman Speyer Properties, said: "The global
 real estate market today offers very attractive investment opportunities.
 This unique venture, with its blend of institutional and private resources,
 its strong capital base, its domestic and international real estate expertise
 and its fine initial portfolio of domestic properties, has the means to build
 substantial value for both investors and the communities in which its
 properties are located.  We look forward to working with the great team at
 Travelers to build and manage a diversified global real estate portfolio
 capable of achieving our financial objectives."
     Travelers Group is one of the nation's largest diversified financial
 services companies, with approximately $170 billion in assets.  Its operating
 companies include Smith Barney, Travelers Life & Annuity, Primerica Financial
 Services, Travelers Property Casualty and Commercial Credit.  Following
 the completion of its announced acquisition of Salomon Inc., Travelers is
 expected to have assets of approximately $350 billion on a pro forma basis.
 In addition to this new venture, Travelers Real Estate Investment Group, a
 subsidiary of Travelers Group, is actively pursuing new debt and equity
 investments through its five locations in New York, Chicago, San Francisco,
 Atlanta and Hartford.  Travelers Real Estate Investment Group currently
 manages over $5 billion in real estate for various Travelers subsidiaries.
     Tishman Speyer Properties is one of the largest real estate organizations
 in the U.S. and has developed or acquired properties valued at approximately
 $6 billion.  In addition to its headquarters in New York City, Tishman Speyer
 maintains U.S. branch offices in Chicago, Los Angeles, San Francisco, Miami,
 Northern Virginia, Stamford and Houston and international offices in London,
 Paris, Frankfurt, Berlin and Sao Paulo.

SOURCE Travelers Insurance Company, Tishman Speyer Properties