GE buys $2.2b in assets from Crow Holdings

GE’s real estate investment arm has acquired a diversified portfolio from the Dallas-based real estate investment firm’s third private equity vehicle. In a separate deal, GE has agreed to sell the retail portion to Kimco Realty for $920m.

Crow Holdings has sold a $2.2 billion (€1.7 billion) diversified US portfolio of 147 properties to GE Real Estate. The transaction is expected to close by the end of the year.

The portfolio is composed of 9.3 million square feet of industrial space, 3.6 million square feet of retails space, eight multi-family properties, six hotels and two office buildings. GE has separately agreed to sell the 19 retail centers included in the deal to Kimco Realty, a large operator of US shopping centers, for $920 million.

The deal helps GE diversify its presence across sectors, Joe Parsons, president, North America, said in a statement. GE has been stepping up its real estate investment as the company focuses on the sections of its business with higher returns.

Crow Holdings, the Dallas-based investment firm tied to the Trammell Crow family, acquired the assets through Crow Real Estate Holdings III, a $600 million private equity real estate vehicle launched in October 2003.

Since 1998, Crow Holdings has raised four funds with equity commitments totaling $2.1 billion, approximately $450 million of which has been committed by the firm. Crow Holdings closed its fourth vehicle on $846.5 million in April.