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13 December 2001
German Institutional Investor Acquires Interest
in Washington, DC Office Building
Acquisition arranged by Lend Lease Real Estate Investments Inc.
New York, NY – December 13, 2001 - GLL Real Estate Partners GmbH, (GLL) has acquired a 65% interest in 1201 F Street, a Class A office building, in Washington DC. The purchase was made on behalf of Hannover Reinsurance, Germany. The majority interest in the property was purchased for an undisclosed price from an entity advised by JPMorganFleming Asset Management. The remaining 35% interest is owned by CarrAmerica Realty Corporation (NYSE:CRE), who also leases and manages the property.
GLL Real Estate Partners is a joint venture between Lend Lease Continental Holdings, a subsidiary of Lend Lease Corporation and the European insurer Generali Group, formed to provide real estate investment management for European investors. This transaction marks the first US acquisition for the venture.
Completed in 2000, 1201 F Street is a Class A office building totaling approximately 227,500 square feet of space. The property is well located in the heart of the East End submarket and adjacent to the Washington Metrorail hub, two and one-half blocks east of the White House.
Lend Lease Real Estate Investments originated the transaction. According to Peter Doherty, a Vice President and head of Lend Lease’s Washington DC office, “Compared with other recent Washington office transactions, 1201 F Street was acquired on favorable terms, both on a per square foot and cap rate basis.”
Peter Nicoletti, Vice President - Dispositions, JPMorganFleming Asset Management commented: “1201 F Street turned out to be an outstanding investment for our clients. It is a product of our longstanding relationship with CarrAmerica.”
The building is 100% leased with major tenants including Charles River Associates; Cadwalader, Wickersham & Taft ; the Health Insurance Association of America; and the National Federation of Independent Business.
Dietmar Georg, GLL’s Managing Director and Principal said: “The Washington DC office market has been on the top of German institutional investors’ buying lists for some time and will continue to attract investment interest. Kudos must go to our client - negotiations were started long before September 11th. The investor rationally analysed the situation post 9/11 and decided to go ahead in light of considerable political and economic uncertainty,” he said.
Hannover Reinsurance, Hannover, Germany is one of the five largest reinsurers worldwide, and is represented in more than 100 countries. Generali Group is a major European insurance company.
As part of the Lend Lease Group, Lend Lease Real Estate Investments is one of the largest real estate investment managers in the world and a leading U.S. real estate advisor to pension funds. The company has $36 billion in real estate and commercial mortgages under management for institutional and private clients in the U.S.
Listed on the Australian Stock Exchange (ASX: LLC), the Lend Lease Group is an integrated global real estate organization, operating in 38 countries on six continents. In addition to investment management, Lend Lease also is a leading worldwide provider of project management, construction, development, capital structuring and consulting services.
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