Thirty-one of the Dallas-area AIP REIT's 150-building portfoliowill be sold to client accounts managed by Lend Lease Real EstateInvestments Inc. According to preliminary information in a pressrelease issued today, the gross purchase price, including assumeddebt, totals $292.5 million. In addition, an office building isbeing sold to a third party for a gross purchase price of about $55million.

The merger will be discussed in depth in a conference call beingplanned for next week, GlobeSt.com has been told. The pact alsocalls for a DDR subsidiary to acquire all outstanding AIP stock for$13.74 per share in a buy being funded solely by the plannedproperty sales. DDR already owns 46% of the Texas REIT. Under thesigned agreement, other AIP shareholders also will get $13.74 pershare, 9.9% more than over AIP's closing share price of $12.50posted yesterday. The amount being paid to AIP shareholders couldbe affected by operations prior to the merger's closing,transaction expenses and closing adjustments. AIP had made a22-cents per share cash for its third-quarter operation.

AIP's board of trust managers had approved the takeover Tuesdayas a result of a committee recommendation. The deal is expected toclose in first quarter 2001, subject to AIP shareholder approvaland customary closing conditions. AIP has been seeking a merger,sale or other strategic alliance since November 1999. "Thistransaction provides us complete control of our investment in AIP,"says Scott A. Wolstein, chairman and CEO of DDR and AIPchairman.