Wells Funds attract $1.56B in investments in 2005.

Wells Real Estate Funds attracted $1.56 billion in investments in 2005 across its offerings, including its current Wells REIT II--30 percent over $1.2 billion the previous year, the company announced.

Meanwhile, Wells' funds acquired some $1.6 billion in commercial real estate in 2005, up from $1.4 billion in 2004. Major acquisitions included University Circle in East Palo Alto, Calif., 100 East Pratt in Baltimore; 5 Houston Center and, in an ownership stake with the Jacobs Group, Key Center in Cleveland.

Wells portfolios, including Wells Real Estate Investment Trust (Wells REIT) and Wells Real Estate Investment Trust II (Wells REIT II), now include more than 35 million square feet of space in 163 buildings, primarily Class-A office properties, geographically diversified across 28 states and Washington D.C. Of tenants with credit ratings from services such as Moody's Investors Service or Standard & Poor's, the weighted average is "A+," in the case of REIT I, and BBB+, in the case of REIT II. The combined REIT and REIT II portfolios are more than 95 percent leased.

"Individual investors continue to be interested in commercial real estate, for income and diversification," said Leo Wells, president of Wells Real Estate Funds. "I believe more and more investors really are starting to recognize investment real estate as their fourth 'asset class.'"

Wells funds also, as part of their strategic portfolio management, sold $824 million in assets in 2005, in many cases locking in significant gains for investors--including the $786 million sale of 27 office and industrial properties, chiefly by Wells REIT, the largest such transaction by a nontraded REIT.