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Inland Real Estate Corporation Announces New Institutional Joint Venture with PGGM

^{Published on 2010-06-07 14:55:28 - Market Wire}
 

OAK BROOK, Ill.--([ BUSINESS WIRE ])--Inland Real Estate Corporation (NYSE: IRC) today announced that it has formed a new joint venture with PGGM, a leading Dutch pension fund administrator and asset manager, to acquire up to $270 million of grocery-anchored and community retail centers in Midwest U.S. markets.

"We are very pleased to establish this partnership with PGGM, one of the worlda™s largest and most respected pension fund administrators and asset managers"

Upon the initial closing, PGGM will contribute $20 million of equity and Inland Real Estate Corporation will contribute three retail centers with an approximate gross equity value of $45 million to the joint venture.

The three Inland contributed properties include the following:

• 97,638-square-foot Shannon Square Shoppes in Arden, Minnesota;
• 82,929-square-foot Mallard Crossing neighborhood retail center in Elk Grove Village, Illinois; and the
• 170,122-square-foot Woodland Commons community retail center in Buffalo Grove, Illinois.

After the initial investment, the joint venture agreement provides that Inland Real Estate Corporation will contribute additional assets from the consolidated portfolio and PGGM will contribute additional equity to the venture as new acquisitions are identified. Under the terms of the agreement, PGGM will contribute additional equity of approximately $50 million towards contributed properties and $60 million to new acquisitions, for a total equity contribution of $130 million. The joint venture will acquire additional assets using leverage consistent with Inlanda™s existing business plan during the next two years to achieve its investment objectives.

PGGM will hold a 45 percent equity ownership interest and Inland Real Estate Corporation will hold a 55 percent interest in the venture. Inland Real Estate Corporation will be the managing partner of the venture and will earn fees for asset management, property management, leasing and other services provided to the venture.

aWe are very pleased to establish this partnership with PGGM, one of the worlda™s largest and most respected pension fund administrators and asset managers,a said Mark E. Zalatoris, Inland Real Estate Corporationa™s president and CEO. aThis joint venture maximizes the benefits to our shareholders, while providing PGGM the opportunity to invest in high quality, well located, necessity-based retail alongside a seasoned management team averaging over 20 years real estate experience.a

Inland Institutional Capital Partners Corporation served as Inland Real Estate Corporationa™s adviser on this transaction. Jones Lang LaSalle assisted PGGM for property due diligence on contributed IRC properties.

About Inland Real Estate Corporation

Inland Real Estate Corporation is a self-administered and self-managed publicly traded real estate investment trust (REIT) that currently owns interests in 140 open-air neighborhood, community, power, and lifestyle shopping centers and single tenant properties located primarily in the Midwestern United States, with aggregate leasable space of more than 14 million square feet. Additional information on Inland Real Estate Corporation is available at [ www.inlandrealestate.com ].

Certain statements in this press release constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995.Forward-looking statements are statements that are not historical, including statements regarding management's intentions, beliefs, expectations, representations, plans or predictions of the future and are typically identified by words such as "believe," "expect," "anticipate," "intend," "estimate," "may," "will," "should" and "could."Similarly, statements that describe or contain information related to matters such as managementa™s intent, belief or expectation with respect to our financial performance, investment strategy and portfolio, our ability to address debt maturities, our cash flows, our growth prospects, the value of our assets, our joint venture commitments and the amount and timing of anticipated future cash distributions are forward-looking statements. These forward-looking statements are not historical facts but are the intent, belief or current expectations of our management based on their knowledge and understanding of the business and industry, the economy and other future conditions. These statements are not guarantees of future performance, and investors should not place undue reliance on forward-looking statements. Actual results may differ materially from those expressed or forecasted in the forward-looking statements due to a variety of risks, uncertainties and other factors, including but not limited to the factors listed and described under aRisk Factorsa in our Annual Report on Form 10-K for the year ended December 31, 2009, as filed with the Securities and Exchange Commission on February 26, 2010.These factors include, but are not limited to: market and economic challenges experienced by the U.S. economy or real estate industry as a whole, including dislocations and liquidity disruptions in the credit markets; the inability of tenants to continue paying their rent obligations due to bankruptcy, insolvency or a general downturn in their business; competition for real estate assets and tenants; impairment charges; the availability of cash flow from operating activities for distributions and capital expenditures; our ability to refinance maturing debt or to obtain new financing on attractive terms; future increases in interest rates; actions or failures by our joint venture partners, including development partners; and other factors that could affect our ability to qualify as a real estate investment trust.We intend that the forward-looking statements be subject to the safe harbors created by Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended.We undertake no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.