CalSTRS Enters Into $200 Million Real Estate Joint Venture with Sealy & Company, Inc.
January 30, 2008 (Des Moines, Iowa) — Principal Real Estate Investors announced today they will act on behalf of the California State Teachers' Retirement System in a new industrial joint venture with the real estate investment firm Sealy & Company, Inc. The joint venture will pursue a strategy involving the acquisition and development of industrial projects. Current equity commitments total approximately $200 million.
The joint venture's primary objective will be the assemblage and development of a portfolio of institutional quality industrial properties. The properties are to be held for long-term income and appreciation. However, it will also pursue select transactions involving shorter holding periods.
"This joint venture combines the vigor of a flourishing, entrepreneurial real estate operating company with the strengths of a successful global institutional investor," said John Frandson, managing director-portfolio management, Principal Real Estate Investors. "Together, we expect the result to be a highly productive, well-capitalized acquisition and development partnership."
Target markets for the partnership include Southeastern, South-central and Southwestern regions of the United States, including but not limited to Texas cities: Houston, Dallas, San Antonio and Austin; Atlanta, Ga.; Nashville, Tenn.; and Florida locations in Jacksonville, Tampa and Orlando.
"Our business and working relationship with The Principal has been excellent over the years. This new venture will allow us to capitalize on the strengths we each bring to the venture", said Scott Sealy, chairman of Sealy & Company.
CalSTRS is the second-largest U.S. public pension fund, with over 800,000 members and beneficiary recipients and total assets of more than $180 billion.
About Sealy & Company, Inc.
Sealy & Company is a real estate investment and operating company. Founded in 1946, the company employs nearly 100 people. Headquartered in Dallas, Texas and Shreveport, La., the company is a recognized leader in the acquisition, repositioning and ground-up development of regional distribution and industrial facilities.
About Principal Real Estate Investors
Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States based on tax-exempt assets under management1 and manages or subadvises $40.4 billion in commercial real estate assets. The firm's real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group®.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)2 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $306 billion in assets under management3 and serves clients worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
1) Ranked by U.S. institutional tax-exempt assets, out of 50 managers profiled, as of June 30, 2007. "Real Estate Managers," PENSIONS & INVESTMENTS, Oct. 15, 2007
As of Sept. 30, 2007, Principal Global Investors is the asset management arm of the Principal Financial Group® (The Principal®) and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset Management, Inc.; Morley Financial Services Inc.;Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global Investors (Japan) Ltd.; and the majority owned affiliates of Principal International, Inc.
2) "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
3) As of September 30, 2007.
