NEWS RELEASE
FOR IMMEDIATE RELEASE
Contact: Laurence J. Dwyer 617/578-1686 (NEIC)
Laura M. Swymer 617/578-1309 (NEIC)
Martha J. Thurber 617/261-9590 (AEW)
New England Investment Companies, L.P. to Acquire
Aldrich, Eastman & Waltch, L.P.
BOSTON (October 15, 1996) -- New England Investment Companies, L.P.
announced today that it has agreed to acquire the real estate investment
advisory firm of Aldrich, Eastman & Waltch, L.P. and will consolidate its
current real estate investment advisor, Copley Real Estate Advisors, into a new
company, AEW Capital Management, L.P., with more than $7.6 billion in assets
under management. The acquisition is the second major transaction announced by
New England Investment Companies in the last month and will increase its assets
under management to $96 billion when the two mergers are completed.
AEW Capital Management will take a sharply focused, value-added
approach to real estate investment. Combining fundamental real estate knowledge,
capital markets expertise and applied research, the firm will emphasize real
estate securities (REITs and CMBS); high-yield equity and debt strategies; and
customized portfolio advisory services to help clients enhance the liquidity and
improve the performance of their existing real estate portfolios.
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"Aldrich, Eastman & Waltch and Copley are an excellent match, " said
Peter S. Voss, Chairman and Chief Executive Officer of NEIC. "Aldrich, Eastman &
Waltch is well-known for its research and capital markets expertise, and for
taking an innovative, customized approach to meeting the needs of its clients,
primarily separate accounts. Copley, whose clients have principally been
investors in commingled funds, brings a depth of fundamental real estate
knowledge as well as long-established relationships with many of the nation's
leading real estate operators to the new firm."
"The combined firm will put New England Investment Companies squarely
at the forefront of the real estate sector, which is a key component of our
`strength through diversification' strategy," he added. "The principals of both
companies understand the changing dynamics of the real estate industry. In the
past, real estate advisors have often been an amalgamation of a real estate
company and an investment advisor. AEW Capital Management will clearly be an
investment advisor, whose sole customers will be its clients, and whose sole
objective will be meeting their needs."
Joseph F. Azrack, who currently serves as President and Chief Executive
Officer of Aldrich, Eastman & Waltch, will be the President and Chief Executive
Officer of AEW Capital Management. Peter C. Aldrich and Joseph W. O'Connor will
serve as non-executive Co-Chairmen. They will work at the direction of Mr.
Azrack to maintain and enhance relationships with clients and real estate owners
and operators. AEW Capital Management will have a primary office in Boston and a
full-service branch office in Los Angeles.
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"I look forward to working closely with Peter Voss, Joe O'Connor and
Peter Aldrich to lead an investment firm that is fully equipped to lead the way
in a rapidly changing investment environment," said Mr. Azrack. "We are all
committed to meeting the needs of our clients for enhanced liquidity and
alignment of interests between investor and manager. We intend to demonstrate
this commitment by co-investing in appropriate vehicles with our clients and
sharing with them the costs, risks and rewards of these investments."
"One of our key strategies is to invest in real estate operating
companies, rather than in individual assets," he added. "Over the past 15 years,
both firms have developed extensive knowledge about the portfolios, strategies
and management capabilities of virtually all of the leading real estate
operating companies in the U.S. No other advisory firm will be better equipped
to advise clients about how to take advantage of entity-based investment
opportunities."
"I have known many of the principals of Aldrich, Eastman & Waltch for
more than 15 years," said Mr. O'Connor. "Together we have developed a strong
business plan for AEW Capital Management that incorporates the best practices
and resources of both firms and will enable us to provide superior investment
performance and excellent client service in a constantly evolving real estate
market."
Founded in 1981, Aldrich, Eastman & Waltch currently manages
approximately $5 billion in client capital invested in $12 billion of real
estate on behalf of 81 institutional clients. The firm's hallmark has been the
integration of real estate and capital markets expertise with applied research
to identify and capture the best relative value opportunities for clients. The
firm currently manages approximately $1.7 billion of investments in public and
private real estate operating companies, as well as $3.3 billion of capital
invested in directly held real estate assets.
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Copley was founded in 1982, has 121 institutional clients and currently
manages $2.6 billion of capital invested in $5.6 billion of real estate. Copley
is a leading investor in industrial real estate in the U.S. It also has a strong
presence in the office, developmental and single-family markets with a strong
concentration of its assets on the east and west coasts.
The acquisition of Aldrich, Eastman & Waltch is the third major
transaction announced by New England Investment Companies in 1996. On May 9, it
completed the acquisition of Vaughan, Nelson, Scarborough & McConnell, L.P., a
Houston-based investment manager with $1.7 billion in assets under management.
On September 23, New England Investment Companies announced that it has signed
an agreement to acquire Jurika & Voyles, Inc., an Oakland-based investment
management firm with more than $5 billion in assets under management. When the
AEW and Jurika & Voyles transactions are completed, New England Investment
Companies will have $95 billion in assets under management.
New England Investment Companies is a limited partnership with
approximately $89 billion in assets under management. The firm is comprised of
12 subsidiaries, divisions and affiliates offering a wide array of investment
styles and products to institutional and individual clients. Its business units
include Back Bay Advisors; Copley Real Estate Advisors; Graystone Partners;
Harris Associates; Loomis, Sayles & Co.; New England Funds; New England
Investment Associates; Reich & Tang Capital Management; Reich & Tang Funds;
Vaughan, Nelson, Scarborough & McConnell; Westpeak Investment Advisors; and New
England Investment Companies' affiliate, Capital Growth Management.
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