Sealy & Company - Home

press-release

Principal Real Estate Investors Enters Into $200 Million Partnership with Sealy & Company, Inc.

Partnership on behalf of the California State Teachers’ Retirement System

(Des Moines, Iowa) – Principal Real Estate Investors announced today that on behalf of the California State Teachers’ Retirement System (CalSTRS), they have entered into a new joint venture with Sealy & Company, Inc., a Dallas-based real estate investment and development company. The current equity commitment for the partnership totals more than $200 million.

            The partnership will pursue a strategy involving the acquisition and development

of value-add industrial and office properties.

            “This joint venture combines the vigor of a successful, entrepreneurial real estate operating company with the strengths of a successful global institutional investor”, said John Frandson, managing director-portfolio management, Principal Real Estate Investors. “Together, we expect the result to be a highly productive, well-capitalized acquisition and development partnership.”

            Target markets for the partnership include Southeastern, South-central and Southwestern regions of the United States, including but not limited to Houston; Dallas; San Antonio; Austin; Atlanta.; Nashville; Jacksonville.; Tampa; and Orlando.

            “Our business and working relationship with Principal has been excellent over the years. This new venture will allow us to capitalize on the strengths that we each bring to the venture”, said Scott Sealy, Chairman of Sealy & Company.

            The partnership’s primary objective will be the assemblage and development of a portfolio of institutional quality industrial properties. The properties are to be held for long-term income and appreciation. However, the partnership will also pursue select transactions involving shorter holding periods.

            CalSTRS is the second-largest U.S. public pension fund, with over 800,000 members and beneficiary recipients and total assets of more than $180 billion.

About Sealy & Company, Inc.

Sealy & Company is a real estate investment and development company. Founded in 1946, the company employs nearly 100 people. Headquartered in Dallas and Shreveport, LA, Sealy & Company is a recognized leader in the acquisition, repositioning and ground-up development of regional distribution and industrial facilities. Earlier in 2008, Sealy announced the development of Palomino Crossing, a $150 million office and retail center in the western sector of Plano, TX. The Green (LEED) development will include four office buildings situated on 36 acres and eight retail sites on 14.3 acres.

Sealy & Company has completed developments in cities throughout the southern half of the U.S. including New Orleans, Baton Rouge, Jacksonville, Phoenix, Brownsville, Houston, Dallas, San Antonio and Nashville. The company has eight offices including Dallas, Houston, San Antonio and Forney, TX, Shreveport, Nashville, Atlanta and New Orleans. For more information, visit www.sealynet.com.

About Principal Real Estate Investors: 

Principal Real Estate Investors is the fourth largest institutional real estate manager in the United States based on tax-exempt assets under management[1] and manages or subadvises $40.4 billion in commercial real estate assets. The firm’s real estate capabilities include both public and private equity and debt investment alternatives. Principal Real Estate Investors is the dedicated real estate group of Principal Global Investors, a diversified asset management organization and a member of the Principal Financial Group.®

About the Principal Financial Group:

The Principal Financial Group^Ò(The Principal ^®)[2] is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $306.0 billion in assets under management[3]and serves clients worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.

###