Oak Brook, Ill. – Inland Institutional Capital Partners Corporation announced today that the company has successfully negotiated a $250 million dollar participating preferred equity investment with LIP Holdings, LLC on behalf of Inland American Real Estate Trust, Inc. (“Inland American”). LIP Holdings is a subsidiary of Lauth Investment Properties, LLC, which is an affiliate of the Lauth Group, Inc., a leading developer in the United States. LIP Holdings will use the preferred equity to fund the development and ownership of more than $1 billion of real estate projects in the office, distribution, retail, healthcare and mixed-use markets nationally. Under the terms of the agreement, Inland American has committed to invest up to $250 million in participating preferred equity in LIP Holdings, with an initial investment of $80.4 million. LIP Holdings initially holds eight stabilized properties, in addition to several current development projects. Thereafter, Inland American intends to invest up to $25 million on a quarterly basis through year-end 2008.
Inland American was advised in the transaction by George A. Pandaleon, president of Inland Institutional Capital Partners. 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. Since its inception in 2006, Inland Institutional Capital Partners has completed capital raising and financial advisory transactions with a value in excess of $5 billion.
Inland American Real Estate Trust, Inc. is a real estate investment trust focused on acquiring and owning a diversified portfolio, including retail, office, multi-family and industrial properties within the United States and Canada, either directly, or by acquiring REITs or other "real estate operating companies.” As of March 1, 2007, the company’s portfolio consisted of wholly owned and joint venture interests in 106 properties, for a total of approximately 18 million square feet. Inland American is one of four REITs that are, or have been, sponsored by affiliates of The Inland Real Estate Group of Companies, Inc. For further information regarding Inland American, please refer to the company website at www.inland-american.com
Lauth Group, Inc. is one of the nation's largest real estate development and construction companies with offices throughout the United States. Headquartered in Indianapolis, for over 30 years Lauth has successfully developed billions worth of projects of all types including office, retail, industrial and healthcare in 35 states. Lauth has been named a "Best Place to Work" by the Indiana Chamber of Commerce. Additional information about Lauth is available at www.lauth.net