Burnet Realty acquires The Prudential Preferred Properties of Chicago.

MINNEAPOLIS--(BUSINESS WIRE)--Dec. 8, 1995--Burnet Realty, the nation's third largest independent real estate broker and the number one homeseller in Minnesota, today announced that it has acquired The Prudential Preferred Properties of Chicago.

The two companies will have a combined 1994 sales volume of $5.3 billion, anticipated 1995 year end sales volume slightly below $6 billion and revenues of just over $200 million. The Prudential Preferred Properties, a member of The Prudential Real Estate Affiliates, is the nation's 22nd largest independent broker.

"This is a natural fit for both of our companies," said Ralph Burnet, chairman, CEO of Burnet. "We have a long history of friendship and cooperation with Lyle Williamson, president and CEO of The Prudential Preferred Properties and we have very similar philosophies of doing business and providing quality services to our customers."

The transaction marks the first major expansion for Burnet outside the states of Minnesota and Wisconsin.

"We must continue to grow if we want to remain a leader in residential real estate and stay competitive," said Burnet. "This move fits into our strategy to maintain and widen our leadership, especially in the Midwest."

Burnet expects to add to The Prudential Preferred Properties' existing real estate operations in Chicago and provide a complete range of home ownership services, including title insurance and closing services and expanded relocation services. The firm's sales associates will also have access to Burnet's advanced software systems, RADIX(R).

Williamson, who will continue as CEO of The Prudential Preferred Properties, shared Burnet's enthusiasm. "I am delighted that we have such a strong partner with whom we've had a long association," he said. "Ralph Burnet has an outstanding reputation as a true visionary in the real estate profession, and I would rather have him on my side than compete with him."

Williamson's management will remain an integral part of the combined company. The Prudential Preferred Properties' 25 sales offices and 900 sales associates in Chicago will continue to operate under The Prudential Preferred Properties name. The company also will continue as a member of The Prudential Real Estate Affiliates a nationwide network of independent real estate brokerage firms, comprising over 37,000 sales associates in 1,300 offices nationwide.

"The Prudential Preferred Properties name has a lot of recognition in the Chicago area," said Burnet. "There's no reason to change what is already a success."

In 1990, Ralph Burnet and Dar Reedy, vice chairman and president of Burnet Financial Group, bought back the company which Burnet founded more than 20 years ago and sold in 1982. Since 1990, Burnet Realty has more than doubled in size, with sales increasing from $1.7 billion in 1990 to a projected $3.8 billion in 1995 and anticipated revenues of $151.8 million. In addition to The Prudential Preferred Properties, Burnet has acquired six smaller real estate companies since 1990. Together with The Prudential Preferred Properties, the companies now have almost 2,900 sales associates operating out of 65 offices.

Over the past five years, Burnet Realty has created an integrated approach to real estate services, forming a number of companies to make the home buying and selling process easier and more convenient for customers. Those companies operating as The Burnet Financial Group include: Great Lakes Mortgage, First Security Title, Burnet Relocation Management and Burnet Insurance.

Burnet Realty is the number one home seller in Minnesota and the third largest independent real estate broker in the United States. Burnet Financial Group, including The Prudential Preferred Properties of Chicago, has approximately 3,700 sales associates and employees operating out of 84 facilities.

CONTACT: Shandwick USA

Cathy Kennedy (ext. 310)/Julia Jevnick (ext. 373)

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