The REIT, LCP Investment Corp., is buying two GE officebuildings and five multifamily properties in the Tokyo metropolitanarea, allowing LCP to grow its assets 64.3% to $740 million.Subsequently, a Japanese arm of GE called, New Mission FundingCorp., will purchase 32,500 newly issued units in LCP for $117million.

"This is a great opportunity for GE Real Estate to establish acooperative relationship with a Japanese REIT with excellent growthpotential," says GE Real Estate of Japan President Tomoyuki Yoshidain a release announcing the complicated arrangement. Yoshida sayshis firm is impressed by LCP's management and expertise, addingGE's goal is to enable larger, high quality assets to be securedand "help raise the overall profile and value" of the REIT.

That vision is shared by LCP, according to executive officerShunji Myazaki, who comments that the portfolio of Tokyo properties"presents us with a pipeline of quality assets, and are in linewith our external growth strategy." To raise the remaining moniesnecessary to complete the purchase, LCP is seeking a loan from UBSthat will increase the overall leverage for the REIT to nearly60%.