PACTnet:Events

Michael Buckley, Director - Real Estate Development Program
Columbia University

8:45 - 10:00 am

Listed and Unlisted REIT: A View From The Top

With the bursting of the stock market bubble, historic low interest rates, coupled with current equities dividend yield of 1.8%, traded and unlisted REIT's are gaining widespread interest from individuals and institutional alike in pursuit of stable dividends. Unlisted REIT and partnership equity reached $3.6 billion in 2002, up from $1.6 billion in 2001.

Michael Buckley, Director
Real Estate Development Program Columbia University

10:30 - 11:00 am
Alternative Assets: Global Placement Agent View and Comparative Analysis of Asset Classes for Real Estate, Hedge Funds, Distressed and Private Equity

The relative drought in fundraising for the past two years was preceded by record inflows into private equity of $200 billion in 2001 compared to $17 billion in real estate private equity raised. Domestic and European institutional investors have embraced real estate as an asset class and are seeking structured real estate products that generate current cash flows and returns. In fact, the same sources of patient capital for hedge funds and private equity are surfacing as patient equity for real estate.

Alan Pardee, Managing Director
Merrill Lynch - Private Equity Group

11:00 -12:15 noon
Off-Balance Sheet Partnership with Institutional Funds: Deals and Deal Structures That Work

REIT joint ventures have mushroomed from $8 billion in 1998 to over $38 billion in 2001 corresponding to 59 ventures and 186 ventures, respectively. In the mid-1990's developers and owners alike sold their interest to the public market at the height at well above net asset value. Today, public equity market represent a volatile capital source. High transaction costs resulting from fees and negative arbitrage are hindrances to raising public equity. One alternative is asset recycling - sale of stabilized, mature assets and recycling the equity proceeds into higher return investments. The other alternative is a joint venture utilizing patient institutional funds which do not require liquidation of assets eliminating the adverse tax implications and enhancing earnings.

Moderator:

Joshua M. Brown, Principal - Private Equity
Secured Capital Corp.

Speakers:

Richard Jennings, President
Realty Capital International, Inc.

Walter Rakowich, Chief Financial Officer
Prologis

Louis Lagios, President
GCC Partners

Laine Kenan, Director - Real Estate (*)
First Islamic Investment Bank

This panel will focus on risks and returns associated with entity and portfolio co-investments, development joint venture and partnerships. Property owner/operator provides the co-investor with many benefits, be it their national and local tenant relationships, development know-how, deal flow, operating scale and structuring expertise.

Speakers:

William Chadwick, Managing Director Chadwick,
Saylor & Co., Inc.

Gary Kauffman, Managing Director
Prudential Investment Management

John Bottomley, Managing Director
Citigroup Alternative Investments

Jeffrey M. Tapley, Senior Investment Officer
Fidelity Investments Real Estate Group

The high income feature of real estate is in great demand as pension funds and insurance companies struggle to find cash flow to pay liabilities. Real estate asset class now provides 21% of portfolio income and covers 17% of payout obligations with an average allocation to real estate of 8%. With more capital allocation within the industry, how will pension funds allocate capital across a broad range of risk/return combinations.

Middle east investors, investment banks, private banks, wealthy family investors, foreign insurance companies & pension funds, and German Spezialfonds and open ended funds are among the new breed of patient investors. Middle eastern investors alone poured $1.2 billion into US real estate while German buyers snapped up close to $4 billion in US properties. These new sources of equity capital are competitive with the domestic funds and is aggressively seeking US property investment.

Moderator:

Lawrence Vogler, Managing Director
HI Group

Speakers:

Stephen J. Zoukis, Partner
Jamestown

Noble O. Carpenter, Jr., Managing Director
Jones Lang LaSalle

HIGroup is unique in the world of commercial real estate investment, blending marketing capabilities, property knowledge and investment banking skills with established national and international investor relationships that give us a global perspective on the real estate capital markets. HIGroup acts as advisors and advocates for clients, not as brokers - offering objective advice, creative solutions, and reliable implementation of the strategic plan for each engagement.

Secured Capital Corp. is a real estate investment bank specializing in institutional property sales, large property financings, sales of existing mortgages, hotel sales and financings, and corporate finance and raising capital for real estate companies. The company has completed more than $40 billion in real estate transactions since 1990, including $6 billion of transactions in 2002.

King & Spalding is an international law firm with more than 700 lawyers and offices in Atlanta, Houston, London, New York and Washington, D.C. The firm represents more than half of the Fortune 100 companies. For the past 10 years, King & Spalding has been ranked by The American Lawyer among the top 50 law firms in the United States.