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Atlanta, GA � January 4, 1999 � Value Enhancement Fund III
(VEF III), most recent in a series of enhanced equity real estate funds
managed by Lend Lease Real Estate Investments, today announced the acquisition
of Westin River North Hotel, a 424-room, Class A hotel located in downtown
Chicago.
Built in 1987 and extensively renovated in 1998 the hotel features 26,500 square feet of meeting space, a 150-seat restaurant, lounge, fitness center, and business center. The hotel, located at 320 North Dearborn Street, is centrally located in downtown Chicago with close proximity to both leisure and commercial activities and is within walking distance of North Michigan Avenue, the Loop, and some of the finest restaurants and entertainment venues in the city. "We saw Westin River North as an excellent opportunity," said Kevin Mallory, head of Lend Lease's Lodging and Leisure group based in Chicago who handled the acquisition. "We were able to purchase this first class hotel in an excellent location in downtown Chicago at an attractive price. The exceptional physical product, a recent renovation and re-branding, combined with a strong Chicago hotel market will provide substantial upside potential," he said. VEF III closed in June with approximately $450 million in commitments from 30 clients. The Fund is targeting properties in all major property types with a geographic preference for markets with strong economic growth. At present it has closed on six investments. Both VEF I and VEF II are currently in operation and have achieved total rates of return for the year ended September 30, 1998 of 38.9 % and 27.7%, respectively. The series of Value Enhancement Funds have attracted approximately $1 billion since the inception of VEF I in 1993. Lend Lease Real Estate Investments has $28.5 billion in assets under management on five continents�North America, Europe, Asia, Australia and South America. The company ranks as the leading US manager of tax-exempt assets invested in real estate, and has $24.4 billion in its US real estate and mortgage portfolios. Lend Lease Real Estate Investments is part of Lend Lease Corporation (AUS: LLC), an international property and financial services group. In addition to real estate investments the Lend Lease group operates in the areas of project management and construction, property development, funds management, life insurance and information technology. Lend Lease Corp. has total funds under management of $44.1 billion and a market capitalization of $4.9 billion. |
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