The two firms reported that they had reached a definitiveagreement on the purchase deal by GE Capital on Friday, Dec. 14.The transaction, which requires approval by Security Capital Groupshareholders as well as from a number of regulatory agencies, isexpected to close during the first quarter of 2002. The deal willgive GE Capital a foothold in the self-storage, parking andgrocery-anchored retail sectors.

"Security Capital has an excellent reputation in the real estateindustry, and we are pleased to be adding its first-rate managementteam to our own," says Michael Pralle, president and chiefexecutive officer of GE Capital Real Estate. "GE Capital RealEstate has become one of the most diverse global resources forcommercial real estate capital. This acquisition complements ourcurrent activities by providing us with new platforms inself-storage, grocery-anchored retail and parking -- some of themost stable asset classes in real estate."

When the deal closes, GE Capital will have ownership interest inStorage USA, an owner and developer of self-storage facilities;Regency Centers, an owner and developer of grocery-anchored retailshopping centers and InterPark, a manager and owner of parkingfacilities. Also part of the transaction includes GE Capital'sacquisition of BelmontCorp., an owner and developer ofsenior-assisted living facilities; real estate investment advisoryfirm Security Capital Research & Management and an interest inSecurity Capital European Realty, a public car parking, selfstorage and office facilities owner and operator for multi-nationalcompanies in Europe.