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TRAVELERS SELLS PRIMARILY FORECLOSED REAL ESTATE AND UNDERPERFORMING COMMERCIAL MORTGAGE LOANS FOR $634 MILLION TO QUANTUM REALTY FUND

 HARTFORD, Conn., Sept. 8 /PRNewswire/ -- The Travelers Corporation (NYSE: TIC) today announced an all-cash transaction for the sale of primarily foreclosed real estate and underperforming commercial mortgage loans to Quantum Realty Fund for $634 million.
 "With this transaction, we expect to sell real estate and mortgage loans with a book value of more than $1 billion by year end," Edward H. Budd, chairman and chief executive officer of The Travelers, said in announcing the sale. The total includes previous sales of $218 million through August and expected additional dispositions of about $200 million.
 "This reduction in underperforming assets, together with steps we've taken to raise capital, restructure our businesses and reduce expenses, keeps us on track with our plans to improve earnings and stimulate future growth," Budd said.
 Robert W. Crispin, vice chairman and chief investment officer, said the company is "taking advantage of emerging liquidity in the real estate markets. The accelerated sales program will put significant underperforming assets back to work through the reinvestment of proceeds in assets with higher current returns."
 The transaction announced today includes the sale of 35 properties and 12 commercial mortgage loans. The mix of 35 properties includes 60 percent office buildings with the balance in apartments, hotels and shopping centers in diverse locations around the country. The transaction will close today.
 Travelers expects to report an after-tax net realized investment gain for the quarter despite a $20 million realized investment loss from the transaction. The after-tax loss on the sale represents 3 percent of the carrying value of the real estate and commercial mortgage loans sold.
 David C. Graves, president of The Travelers Realty Investment Co., said the transaction plays an important role in reducing the negative impact of underperforming real estate on earnings and capital.
 "We've made significant progress in restructuring our real estate portfolio. The success of the accelerated sales program is an important part of that effort," said Graves. "After this transaction, underperformers decreased 13.8 percent from the end of the second quarter of 1993 to $4.3 billion, which includes $2.1 billion of foreclosed real estate, down 16 percent during the same period."
 Travelers is one of the world's largest multiline financial services companies, focusing on insurance, managed health care and investments. Quantum Realty Fund is the North American investment arm of Soros Fund Management, which is the investment advisory firm managed by George Soros.
 -0- 9/8/93
 /CONTACT: Dan Kaferle, 203-277-4583 (media), or Stephen L. Willcox, 203-277-2006 (investor), both of The Travelers/
 (TIC)


CO: The Travelers Corp.; Quantum Realty Fund; Soros Fund Management ST: Connecticut IN: INS FIN SU: FNC

DJ-CM -- NE014 -- 9923 09/08/93 15:20 EDT
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Publication:PR Newswire
Date:Sep 8, 1993
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