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NEW YORK CITY-GE Real Estate has garnered some 147 assets in a $2.2-billion deal with Dallas-based Crow Holdings. The assets, actually held by Crow's Partners III LP fund, include 112 industrial assets (totaling 9.3 million sf); 19 retail centers (3.6 million sf); eight multifamily properties (3,141 units); six hotels (1,727 rooms); and two office buildings (350,000 sf). The properties are geographically dispersed across the US.

But in a quick flip, the Stamford, CT-based investment firm has already shed the 19 shopping centers in that portfolio to New Hyde Park-based Kimco Realty Corp., lead by chairman and CEO Milton Cooper. The value of that deal is $920 million.

The portfolio sale takes advantage of "today's attractive investment sales market and generates strong returns for our partners," says Bob McClain, head of Crow Holdings' real estate group. Mark Gibson and Jody Thornton of Holliday Fenoglio Fowler and CB Richard Ellis' Jack Fraker and Bill Kent spoke for Crow in the deal.

For GE's part, North American equity president Joe Parsons states that the acquisition "lifts" the firm's presence in "a number of sectors and markets."

Kimco, simultaneously closing in on its takeover of Pan Pacific Retail Properties, had already taken what spokespeople are calling a "small" stake in the 19 assets in its part of the deal. The shopping centers are located throughout the country and boast a 95% fill rate.

While Kimco racks up sale after sale, Bank of America Securities analyst Ross Nussbaum raises an eyebrow at the long-term sustainability of such a spending spree. "Kimco expects to add roughly $4 billion in assets each year to the investment management business from $12 billion currently," he writes. "While the company was able to complete $6 billion in 2006 as a result of the PNP deal, $4 billion of annual acquisitions is an ambitious goal and will likely require further M&A."We continue to believe Kimco is a core long-term REIT holding," he continues, "but the stock is likely to remain in the low-$40s until visibility on '07 earnings and execution of the company's five-year plan improves."

Instant Insights /

GE Picks up 147-Asset Portfolio for $2B-Plus

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