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 GREENVILLE, S.C., Dec. 8 /PRNewswire/ -- Insignia Financial Group, Inc. (Nasdaq-NNM: IFGI) and affiliates announced the acquisition of a majority interest in GII Realty, Inc. ("GII"), which owns the general partners in 13 Consolidated Capital Properties real estate limited partnerships. These partnerships own approximately 14,500 units of multi-family residential housing, 2.1 million square feet of commercial real estate and mortgage notes receivable in excess of $200 million. The acquisition further includes the asset and property management affiliates of GII, the right to provide all such services to the partnerships, and substantial limited partner interests in several of the partnerships. The net purchase price was approximately $40,500,000. The assets were acquired principally from Gordon Realty, Inc., an affiliate of Gordon Investment Corporation, a Canadian corporation headquartered in Toronto.
 The transaction is the first in which Insignia has acquired material equity interest directly in limited partnerships in addition to general partnership interests. These equity interests are comprised of approximately 38.9% of the outstanding limited partnership interests in Consolidated Capital Growth Fund, approximately 21.5% of the outstanding limited partnership interests in Consolidated Capital Institutional Properties, approximately 9% of the outstanding limited partnership interests in Consolidated Capital Institutional Properties/3 and approximately 20% of the outstanding limited partnership interests in Consolidated Capital Properties VI. Insignia believes that the value of the limited partnership interests in the partnerships exceeds $40,000,000, including approximately $5,000,000 in partnership cash allocable to Insignia's limited partnership interests. Each of these public partnerships generates material positive cash flow and has as its general partner entities owned by GII in which Insignia also acquired a majority interest.
 Prior to the acquisition by Insignia, an affiliate of GII was engaged in tender offers for limited partner units in three other limited partnerships: Consolidated Capital Properties (CCP) III, IV and VI. Two of such tender offers, on CCP III and CCP IV, were subject to competing offers from Koll Tender Corporation I, an entity not affiliated with either GII or Insignia, and have been withdrawn. The third tender on CCP VI has expired; all units tendered have been accepted for payment by an affiliate of GII and subsequently acquired by Insignia. The general partners of CCP III and CCP IV have filed forms 14D-9 in response to Koll tender offers as of today.
 "We believe we will be able to enhance limited partnership equity values through aggressive asset and property management practices. In addition, we expect to pursue various securitization and recapitalization strategies designed to provide liquidity and cash flow to the limited partners," stated Andrew L. Farkas, Chairman and Chief Executive Officer of Insignia.
 "The Consolidated Capital acquisition is expected to have a significantly favorable effect on Insignia's revenue base and net income," said Mr. Farkas. "While contract service revenues for the Consolidated Capital portfolio are expected to exceed $7 million per annum, Insignia expects to be able to operate these partnerships at costs to the partnerships below pervious levels due to its economies of scale. Accordingly, operating and net income are anticipated to be positively impacted for both the partnerships and Insignia; all parties will benefit from our past experience realizing such economies. As a result of the above, we expect to see growth in cash flows generated by all of these limited partnerships over the next 12 months."
 Mr. Farkas added, "Consolidated Capital is the latest in a series of acquisitions that have significantly contributed to Insignia's expansion. Through both internal and external growth, Insignia's revenue base has increased to more than three times its 1991 level. This specific investment continues to broaden Insignia's business strategy of capitalizing on the highly-fragmented, consolidating real estate syndication market, and demonstrates the ability of the company to capitalize on various securitized equity opportunities present in the market today. In addition, Insignia continues to advance its position as the largest manager of multi-family residential properties and one of the largest managers of commercial property in the United States. With the closing of this transaction, Insignia will provide property and/or asset management service for approximately 220,000 units of multi-family residential housing and approximately 50 million square feet of retail and commercial space."
 Insignia is a fully integrated real estate service organization performing property management, commercial and retail leasing, investor services, partnership administration, mortgage banking, and real estate investment banking services for various ownership entities including approximately 600 limited partnerships having approximately 300,000 limited partners.
 Insignia commenced operations in December 1990. It is the largest manager of multi-family residential properties in the United States and among the largest managers of commercial property. Upon the completion of this transaction, it will provide property and/or asset management services for more than 1,300 properties, with offices in more than 500 cities in 47 states.
 -0- 12/8/94
 /CONTACT: Ronald Uretta of Insignia Financial Group, 803-239-1692/

CO: Insignia Financial Group, Inc. ST: South Carolina IN: FIN SU: TNM

MB -- CH015 -- 3836 12/08/94 15:38 EST
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Publication:PR Newswire
Date:Dec 8, 1994

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