Oak Brook, Ill. – Inland Institutional Capital Partners Corporation announced today that the company has negotiated an agreement on behalf of Inland American Real Estate Trust, Inc. (“Inland American”) to invest up to $100 million in Concord Debt Holdings, LLC (“Concord”), a joint venture debt platform between Winthrop Realty Trust (NYSE:FUR) and Lexington Realty Trust (NYSE:LXP) formed to originate and acquire real estate securities and real estate related loans.
Under the terms of the agreement, Inland American will initially contribute $20 million, with additional contributions up to $100 million in total over an 18 month period, subject to various terms and conditions. Future contributions made by Inland American will be used by the joint venture primarily for the origination and acquisition of additional debt instruments. Inland American will receive a 10 percent priority return on its capital from operating cash flow, as well as a priority return of its capital.
“The current dislocation in the credit markets has produced attractive opportunities to invest in commercial real estate loans,” stated George A. Pandaleon, president of Inland Institutional Capital Partners. “This new partnership enables Inland American to capitalize on Concord’s established, fully integrated business platform.”
Inland Institutional Capital Partners, a part of The Inland Real Estate Group of Companies, Inc., specializes in raising private equity and identifying large scale investment opportunities. Inland Institutional Capital Partners has completed capital raising and financial advisory transactions with total buying power in excess of $8.5 billion.
Inland American Real Estate Trust, Inc. is a real estate investment trust focused on the ownership of a diversified portfolio, including retail, office, multi-family, lodging and industrial properties within the United States and Canada. Inland American acquires assets either directly or by acquiring REITs or other real estate operating companies. As of March 31, 2008, Inland American owned, directly or indirectly through joint ventures in which it has a controlling interest, 882 properties, representing over 35 million square feet and 14,472 lodging rooms. Inland American Real Estate Trust, Inc. is sponsored by an affiliate of The Inland Real Estate Group of Companies, Inc. For more information about Inland American Real Estate Trust, Inc., please visit www.inland-american.com
Lexington Realty Trust is a real estate investment trust that owns, invests in, and manages office, industrial and retail properties net-leased to major corporations throughout the United States and provides investment advisory and asset management services to investors in the net lease area. Lexington shares are traded on the New York Stock Exchange under the symbol "LXP". Additional information about Lexington is available on-line at http://www.lxp.com or by contacting Lexington Realty Trust, Investor Relations, One Penn Plaza, Suite 4015, New York, New York 10119-4015.
Winthrop Realty Trust is a NYSE-listed real estate investment trust (REIT) headquartered in Boston, Massachusetts. Through its subsidiaries and joint ventures, Winthrop acquires, owns, and manages a portfolio of office, retail, and industrial properties. Additional information about Winthrop is available on-line at http://www.winthropreit.com or by contacting Winthrop Realty Trust, Investor Relations, 7 Bulfinch Place, Suite 500, Boston, Massachusetts 02114.