AIG Global Real Estate has joined forces with Chicago-based Inland Real Estate Development to acquire $200 million (€156 million) in undeveloped land for residential development around Chicago, in northern Indiana, and the southern parts of Wisconsin and Michigan.
The partnership with AIG will allow Inland to expand its business model, the company said in a statement. Inland bought up land in the 1980s and 1990s in fast-growing counties outside Chicago and sold it to developers, prodding the area’s transition from rural areas into outlying suburbs. At the peak of its development activity, Inland held more than 11,000 acres in McHenry, Kendall, Kane, Lake, LaSalle and Will Counties.
“We will be buying land over the next two years and overseeing the planning and design of development efforts,” Matthew Fiascone, senior vice president of Inland, said in a statement. “As we have with prior projects, we will work with local governments and development firms to bring developments that serve the needs of newly evolving communities throughout the Midwest.”
Inland Real Estate Development will also contribute an initial portfolio of land totaling approximately $60 million (€47million) to the joint venture.
AIG Global Real Estate, the real estate investment arm of insurance giant American International Group, closed a US Residential Real Estate Fund on $300 million (€234 million) in August 2005. The fund targets the multifamily residential segment, including, but not limited to, acquisition, renovation, repositioning, and potential conversion of existing multifamily properties, as well as the development of multifamily apartments and condominiums.