GE sets its sights on buying portfolios.GE Real Estate has created a Direct Investments business unit to focus on sourcing and managing real estate for its own account. The business will target large portfolios in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and seeks diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. across the four primary asset classes. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Equity has a significant track record of successfully executing large acquisitions of this genre, most notably the complex, $4.8 billion Arden Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. transaction in May 2006 that involved multiple partners, and the newly announced $2.2B Crow Holdings transaction, targeted to close in December 2006. "The historic success of our team in closing large, complex deals for our own account led us to form a business unit focused exclusively on these types of transactions," noted Joe Parsons Parsons, city (1990 pop. 11,924), Labette co., SE Kans.; inc. 1871. It is a shipping point for dairy products, grain, and livestock. Manufactures include ammunition, wire and paper products, plastics, and appliances. , president, North America Equity at GE Real Estate. "By leveraging GE Real Estate's capital strength, risk management expertise and operating experience in local markets, the Direct Investments business unit is well positioned to drive significant growth." The managing director of the Direct Investments business unit is Greg Bates Bates , Katherine Lee 1859-1929. American educator and writer best known for her poem "America the Beautiful," written in 1893 and revised in 1904 and 1911. , who previously was the managing director of multi-family investments for GE Real Estate's North America Equity division. The dedication of this business supports GE Real Estate's double-digit growth objectives. Added Bates, "The new business will leverage GE's proven ability to source transactions, execute quickly and deliver reliable operating results. In addition to growing the direct equity channel for North America Equity, we will manage the assets of the acquired properties in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. to maximize value post-closing." The other leading business unit within GE Real Estate's North America Equity division focuses on joint venture opportunities. This group will continue expanding its joint venture initiatives working with local operating partners. Co-investments with partners use preferred or common equity to buy, reposition, manage and develop assets across most commercial real estate sectors, with the majority of equity investments made in the multifamily, office, industrial and self park sectors. |
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