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INSIGNIA FINANCIAL GROUP INC. ANNOUNCES EXECUTION OF AGREEMENTS FOR AFFILIATES TO PROVIDE ASSET MANAGEMENT SERVICES

 GREENVILLE, S.C., Nov. 22 /PRNewswire/ -- Insignia Financial Group, Inc. (NASDAQ: IFGI) announced today that it has executed agreements with VMS Realty Partners, VMS Realty Investments, Ltd., (collectively "VMS") and Strategic Realty Advisors ("SRA") which omptemplate affiliates of Insignia's providing asset management services to 21 limited partnerships owning 6,314 apartments, 1,892,000 square feet of office space and 878,000 square feet of retail space. In addition, VMS, SRA and Insignia may substitute Insignia affiliates as the new General Partner of the 21 partnerships.
 In a related but separate agreement, ISLP Limited Partnership, a parternship controlled by an affiliate of Insignia, acquired approximately $37,202,291 face amount of non-performing debt owed to European American Bank and Euram Management (collectively "EAB") by VMS. The debt is secured by various obligations owned by the VMS Partnerships. The aggregate purchase price paid to EAB by ISLP was $1,500,000.
 As a part of Insignia's agreement with SRA, ISLP issued an option to purchase a 48.5 percent subordinated interest in ISLP to SRA for a nominal price.
 Insignia's Chairman and Chief Executive Officer Andrew L. Farkas said about the transaction, "We have been working on this series of agreements for about four months now and are exetremely pleased that they have come to fruition. The VMS series of agremeents, including our acquisition of the debt of its principal entities, is consistent with Insignia's primary business plan of providing fully integrated partnership and real estate services, while having capital appreciation incentives consistent with those of the limited partners."
 Insignia anticipates that the service contracts will create revenues to Insignia affiliates, net of fees for services payable to SRA, of approximately $2,500,000 per year. Insignia also anticipates that it will be able to maximize its return on the acquisition of the EAB debt through the utilization of securitized financing strategies such as REMICs (Real Estate Mortgage Investment Conducits). Insignia has completed approximately $400,000,000 of such financings over the past 12 months.
 Insignia is a fully integrated real estate service organization performing property management, asset management, investor services, partnership administration, mortgage banking, and real estate investment banking services for various ownership entities, including approximately 600 limited partnerships having approximately 132,000 limited partners.
 Insignia is the largest manager of multi-family residential properties in the United States and a significant manager of commercial property. Insignia commenced operations in December 1990 and since then has grown to provide property and/or asset management services for more than 1,000 properties, which include approximately 135,000 residential units and approximately 20,000,000 square feet of commercial space, located in more than 400 cities in 44 states, with aggregate annual rentals of approximately $1 billion.
 -0- 11/22/93
 /CONTACT: Bill Page, Insignia Financial Group, 803-239-1640/
 (IFGI)


CO: Insignia Financial Group, Inc.; VMS Realty Partners; VMS Realty
 Investments, Ltd.; Strategic Realty Advisors ST: South Carolina IN: FIN SU:


MM -- CH005 -- 6785 11/22/93 11:05 EST
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Publication:PR Newswire
Date:Nov 22, 1993
Words:496
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