Crow Holdings to Sell Diversified Portfolio of 147 Assets to GE Real Estate for $2.2B

DALLAS, Sept. 27 /PRNewswire/ -- Crow Holdings announced today an agreement to sell 147 assets from its third real estate fund, Crow Holdings Realty Partners III, L.P. ("Fund III") to GE Real Estate for $2.2 Billion. The transaction is subject to customary conditions and is expected to be closed by the end of the year.

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The diversified portfolio is comprised of 112 industrial buildings (9.3 million square feet), 19 retail centers (3.6 million square feet), 8 multi-family properties (3,141 units), 6 hotels (1,727 rooms) and 2 office buildings (350,000 square feet). The properties are geographically dispersed across the U.S.

Separately, GE Real Estate entered into an agreement with Kimco Realty Corporation under which Kimco will acquire the 19 retail centers for approximately $920 million.

Building on its long history and expertise in the real estate industry, Crow Holdings began sponsoring commingled real estate private equity funds in 1998. In October 2003, Crow Holdings launched its third fund with total commitments of approximately $600 million, including a $150 million commitment by Crow Holdings. Over a 29-month period, this equity was invested in 50 different transactions to create a well-diversified portfolio by property type and geographic location.

Crow Holdings began exploring the idea of a recapitalization earlier this year given market conditions and the tremendous volume of capital seeking strong, diversified portfolios. "We believe it was in the best interests of our partners to capitalize on today's attractive investment sales market and generate very strong returns for our partners," stated Bob McClain, head of Crow Holdings' real estate group.

"This transaction brings us a very large, high quality portfolio of real estate assets that lifts our presence in a number of sectors and markets," commented Joe Parsons, President, North American Equity at GE Real Estate. "This deal provides GE Real Estate with the opportunity to work with Crow Holdings on a transaction that creates positive results for both parties. We see continued opportunities to expand our relationship with Crow over the near-term."

The brokers representing Crow Holdings on the transaction were Mark Gibson and Jody Thornton of Holliday Fenoglio Fowler and Jack Fraker and Bill Kent with CB Richard Ellis.

Crow Holdings is actively investing Crow Holdings Realty Partners IV, L.P. ("Fund IV"), which held its final closing in April 2006. Fund IV has total capital commitments of approximately $850 million, including Crow Holdings' commitment of $150 million. This equity will be leveraged to acquire more than $2.8 billion in properties. Consistent with prior funds, Fund IV will invest across all property types throughout the United States. To date, Fund IV has committed approximately 23% of its equity.

Crow Holdings is the diversified group of entities that owns and directs the investments of the Trammell Crow family and its investment partners. GE Real Estate is a leading global resource for commercial real estate capital.

Crow Holdings Contact: Dani Gastner 214-661-8345 dgastner@crowholdings.com GE Contact: Brent Feigenbaum 203/585-0810 brent.feigenbaum@ge.com HLB Communications, Inc. Pamela Flores 312/649-0371 pflores@hlbcomm.com Note to editors: About Crow Holdings

Crow Holdings (http://www.crowholdings.com/) is a privately held firm based in Dallas, Texas that makes investments on behalf of the Trammell Crow family and its investment partners. Today, Crow Holdings has a substantial stake in the ownership of various businesses, both real estate and non-real estate related, with a level of involvement in the management of these companies that ranges from active to passive. Their holdings also include significant, diversified positions in financial investments. The company currently oversees a portfolio of over 19 million square feet of retail, industrial and office properties, approximately 33,000 multi-family units and more than 6,100 hotel rooms.

About GE Real Estate

GE Real Estate (http://www.gerealestate.com/) is one of the world's premier commercial real estate companies with USD44 billion in assets and a presence in 24 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 26% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises. This extraordinary record of success grows out of a reputation for collaboration and partnership; a depth of knowledge and experience and a history of building relationships, finding opportunities and opening doors for more than 5,000 owners, builders, borrowers and brokers worldwide.

GE Commercial Finance (http://www.gecommercialfinance.com/) offers businesses around the globe an extensive array of financial products and services. With over US$206 billion in assets and expertise in the middle-market, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. Headquartered in Norwalk, Connecticut, GE Commercial Finance is a wholly owned subsidiary of the General Electric Company , a diversified services, technology and manufacturing company with operations worldwide.