MERIDIAN INDUSTRIAL TRUST, a public REIT, agreed Thursday to acquire 29 industrial properties from the $16 billion Ameritech pension trust for 7,312,555 shares of common stock. The transaction - expected to close in August - is valued at $161.8 million, based onMeridian's May 28 closing price of $22.12.
Meridian also paid $196 million to Prudential for 57 industrial buildings and 179 acres ready for industrial property development.
In a separate transaction, the insurer and its pension fund real estate money manager - Prudential Real Estate Investors - will purchase $140 million of Meridian common stock. Upon completion of the transaction, Ameritech will oew about 30% of Meridian's outstanding shares, and Prudential will own 23%.
THE CALIFORNIA STATE Teachers' Retirement System staff recommended a reduction in the number of real estate services to be handled by the $68 billion fund's new real estate consultant. The staff is recommending it, rather than the consultant, handle development of policy and procedures for real estate acquisition, management and disposition.
The staff also wants an independent fiduciary, not the consultant, to recommend specific real estate transactions and real estate funds. The staff plans to issue an RFP for a new real estate consultant soon to replace Institutional Property Consultants, which resigned in April. The board is expected to vote on the recommendations next week.
WARREN (MICH.) General Employees' Retirement System is considering balanced management for its $100 million fund, said Christine Cassani, accountant.
Board members are discussing whether to abandon the current portfolio structure of 60% equity, 35% fixed income and 5% real estate fun by seven separate managers. Members feel a balanced approach using fewer managers might immprove reutrn, Ms. Cassani added Discussion may continue at a July 30 meeting.Smith Barney is assuming.
VOLVO-GM Heavy Truck Corp., Greensboro N.C., is searching for a trustee for its $100 million pension plan NationsBank had been trustee before its trust business was purchased by Bankers Trust Fund officials are considering stayingwith Bankers Trust but also are looking at other trustees, said Fred Ward, treasurer. A decision is ecpected by the end of the third quarter. MerrillLynch is assiting.
SINGAPORE WAS THE largest foreign investor in the U.S. commercial real estate and office buildings were the property type of choice for oversees investment groups in 1996, according to the international investment team of CB Commercial Inc. An analysis by the team, which profiled about $3 billion in transactions completed by foreign buyers during 1996, showed the largest amount of foreign investment, 37%, came from Singapore. Germany was the second, accounting for 18%. Unlikethe Singaporeans' preference for offices, the Germans were diversified U.S. property investors, buying office, retail, industrial and apartment properties. Other significant buyers were Hong Kong investors, 17%; Canadians, 10%; and Middle Eastern investors, 4%.
THE TEACHERS INSURANCE and Annuity Association and Rodamco UK sold Kinnaird Retail Park near Edinburgh to Pillar Property Investments PLC for £81 million ($133 million). The two institutional investors achieved an internal rate of return of about 40% during th 17 months they owned the property, which is a 340,000-square-foot mixed-used property on the southeastern outskirts of Edington.
