Lionstone Group and Oregon Pension Fund Expand Real Estate Investment Partnership by $100 Million.Business Editors HOUSTON--(BUSINESS WIRE)--March 11, 2004 The Lionstone Group, a research-based real estate investment firm, announced today that it has received two additional capital commitments totaling $100 million from Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. Public Employees Retirement Fund (OPERF OPERF Oregon Public Employees Retirement Fund ). Half of the money will expand OPERF's investment in Lionstone's Cash Flow Office One fund. The second $50 million will be invested in a broad array of core properties across the U.S. OPERF's decision to invest additional capital follows Lionstone's successful acquisition of approximately $190 million worth of properties in Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , Dallas, Nashville and Santa Monica Santa Monica (săn`tə mŏn`ĭkə), city (1990 pop. 86,905), Los Angeles co., S Calif., on Santa Monica Bay; inc. 1886. Tourism and retailing are important, and the city has motion-picture, biotechnology, and software industries. . Lionstone's Cash Flow Office One fund targets high-occupancy, multi-tenant office buildings in 'permanent' locations of major U.S. cities. In December 2002, OPERF committed $75 million in Cash Flow Office One with the expectation that Lionstone would invest the capital within 18-24 months. Lionstone invested over 80% of the capital within 12 months at initial returns above projection. OPERF's expanded funding allows Cash Flow Office One to acquire, with leverage, a total of $360 million in properties. "We have targeted several properties with attractive yields that will commit the remaining funds in Cash Flow Office One," said Lionstone Principal Dan Dubrowski. "We will be in the market raising funds from new investors for Cash Flow Office Two very soon." OPERF's second $50 million commitment resulted from a novel program that allows select real estate managers to pursue investment opportunities in attractive properties that are outside of OPERF's originally approved parameters. "OPERF seeks access to attractive investment strategies and opportunities as they are sourced by its existing partners," said Steve Gruber Gru·ber , Max von 1853-1927. Austrian bacteriologist noted for his work in serum diagnosis, including the discovery (1896) of the specific agglutination of bacteria by the blood serum of immunized animals. , OPERF's real estate portfolio manager. "This new program avoids missing such opportunities simply because they do not meet approved acquisition criteria. This allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as also differentiates OPERF as a partner and allows Lionstone to acquire property types other than office. We have confidence in Lionstone's capabilities to thoughtfully invest this capital as a complement to Cash Flow Office One," Gruber added. With leverage, the $50 million translates into approximately $85 million worth of buying power Buying Power The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available. Also referred to as "Excess Equity. that Lionstone can invest in office, residential, industrial, retail, medical, etc. properties that meet OPERF's core risk and return parameters. "We feel honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. to get this vote of confidence from such a prestigious institution and an excellent partner," said Lionstone Principal Glenn Lowenstein. Formed in 2001 by partners Dubrowski, Lowenstein, and Tom Bacon, the Lionstone Group is a limited partnership that creates national investment strategies through primary research. Each Lionstone strategy is executed by dedicated teams with discretionary capital. Cash Flow Office One was the firm's first strategy. A second strategy, Urban Core, has been formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. for 2004. OPERF is a $40 billion fund with over $2.5 billion invested in real estate. Lionstone is one of only six firms with whom OPERF has formed exclusive partnerships to directly acquire real estate assets. |
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