SAN DIEGO, June 8 /PRNewswire/ -- Burnham Pacific Properties, Inc.
(NYSE: BPP), an equity real estate investment trust (REIT), today announced
that it has been selected by the California Public Employees' Retirement
System (CalPERS) to become its exclusive venture partner of non-mall retail
properties in the western United States. The parties are negotiating the
terms of an agreement that is expected to close on June 30, 1998.
Initially, CalPERS plans to contribute some $250 million in existing
properties that it currently owns and would make available to the Venture an
additional $150 million in equity capital. Burnham Pacific would make
available some $100 million in equity capital to the Venture. Burnham Pacific
would become the manager of the Venture with authority to acquire, develop,
rehabilitate, lease and manage the assets. The Venture will focus on non-mall
retail assets in the western United States.
"We at CalPERS believe that Burnham Pacific is well positioned to execute
our non-mall retail strategy in the western United States," commented David
Gilbert, Senior Investment for Real Estate at CalPERS. "Burnham Pacific
offers us an experienced management team of seasoned professionals, an
operating philosophy that is consistent with our objectives, and co-investment
capital. We are pleased to be a partner in this Venture."
"Burnham Pacific is honored to have been selected by CalPERS as its
partner," commented J. David Martin, Chief Executive Officer of Burnham
Pacific. "We have enjoyed our existing relationship with CalPERS and are
looking forward to significantly expanding that relationship in this Venture.
We believe that strategic relationships like this one between real estate
operating companies and the pension fund community is the preferred capital
structure of the future."
CalPERS is the nation's largest public pension fund managing assets
totaling more than $140 billion. The System provides retirement and health
benefits to more than one million state and public employees and their
families. Further information about CalPERS can be found on their web site at
http://www.calpers.ca.gov.
Burnham Pacific Properties is a fully integrated real estate operating
company which acquires, rehabilitates, develops and manages retail properties
on the West Coast where it is the largest owner of retail centers. The
Company has offices in San Diego, Los Angeles, San Francisco, and Sacramento
in California, as well as Portland, Oregon and Seattle, Washington. The
Company also makes available on a quarterly basis supplemental information
which includes property and corporate level detail which is available upon
request from the Company. More information on Burnham Pacific may be found on
the Company's web site at http://www.burnhampacific.com or by calling 800-462-5181.
This news release contains forward-looking statements regarding future
events or financial performance of the Company. These statements are only
predictions and actual events or results may differ materially. Investors
should refer to the documents the Company files from time to time with the
Securities and Exchange Commission, specifically the cautionary statement
identifying certain factors that could affect future results included in the
MD&A section of the Company's most recent 10-K report.
SOURCE Burnham Pacific Properties, Inc.
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Related links:
http://www.calpers.ca.gov
CONTACT:
Daniel B. Platt, Chief Financial Officer of
Burnham Pacific Properties, Inc., 619-652-4700, Fax:
619-652-4711, dbplatt@bpac.com
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