Inland Real Estate Corporation Announces New Institutional Joint Venture with PGGM

OAK BROOK, Ill. - Inland Real Estate Corporation today announced that it has formed a new joint venture with PGGM, a leading Dutch pension fund administrator and asset manager, to acquire up to $270 million of grocery-anchored and community retail centers in Midwest U.S. markets.

Upon the initial closing, PGGM will contribute $20 million of equity and Inland Real Estate Corporation will contribute three retail centers with an approximate gross equity value of $45 million to the joint venture.

The three Inland contributed properties include the following:
• 97,638-square-foot Shannon Square Shoppes in Arden, Minnesota
• 82,929-square-foot Mallard Crossing neighborhood retail center in Elk Grove Village, Illinois
• 170,122-square-foot Woodland Commons community retail center in Buffalo Grove, Illinois

After the initial investment, the joint venture agreement provides that Inland Real Estate Corporation will contribute additional assets from the consolidated portfolio and PGGM will contribute additional equity to the venture as new acquisitions are identified. Under the terms of the agreement, PGGM will contribute additional equity of approximately $50 million towards contributed properties and $60 million to new acquisitions, for a total equity contribution of $130 million. The joint venture will acquire additional assets using leverage consistent with Inland's existing business plan during the next two years to achieve its investment objectives.

PGGM will hold a 45 percent equity ownership interest and Inland Real Estate Corporation will hold a 55 percent interest in the venture. Inland Real Estate Corporation will be the managing partner of the venture and will earn fees for asset management, property management, leasing and other services provided to the venture.

"We are very pleased to establish this partnership with PGGM, one of the world's largest and most respected pension fund administrators and asset managers," said Mark E. Zalatoris, Inland Real Estate Corporation's president and CEO. "This joint venture maximizes the benefits to our shareholders, while providing PGGM the opportunity to invest in high quality, well located, necessity-based retail alongside a seasoned management team averaging over 20 years real estate experience."

Inland Institutional Capital Partners Corporation served as Inland Real Estate Corporation's adviser on this transaction. Jones Lang LaSalle assisted PGGM for property due diligence on contributed IRC properties.


About Inland Real Estate Corporation

Inland Real Estate Corporation is a self-administered and self-managed publicly traded real estate investment trust (REIT) that currently owns interests in 140 open-air neighborhood, community, power, and lifestyle shopping centers and single tenant properties located primarily in the Midwestern United States, with aggregate leasable space of more than 14 million square feet. Additional information on Inland Real Estate Corporation is available at