SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
20549
________________________________________
FORM 8-K
________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 31, 1996
(Date of earliest event reported)
INSIGNIA FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-19066 13-3591193
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification
Number)
One Insignia Financial Plaza
Post Office Box 1089
Greenville, South Carolina 29602
(Address of Principal Executive Office)
Registrant's telephone number, including area code: (864) 239-1000
______________________________________
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Item 5. Other Events
On December 31, 1996, a 25% owned affiliate of Insignia Financial Group, Inc.
("Insignia" or the "Company"), successfully completed the acquisition of 25
multi-family properties. The affiliate ("Southwest Associates") is a joint
venture with Blackstone Real Estate Advisors, a New York based investment
banking group. Southwest Associates entered into a Purchase Agreement with GSSW
Limited Partnership and GSSW-REO Ownership Corporation to acquire assets known
as the GSSW Portfolio, which were formerly owned by a joint venture between
Great Southern Life Insurance Company and Southwestern Life Insurance Company.
Insignia owns 25% of Southwest Associates. The total consideration paid by
Southwest Associates for the GSSW Portfolio was approximately $109 million.
Affiliates of Insignia, in addition to being a general partner in the acquiring
entity, became the property manager for the properties effective January 1,
1997. The addition of approximately 6,000 units is expected to add $1.0 million
in management fee revenues.
Item 7. Financial Statement and Exhibits
(c) Exhibits
Exhibit No.
99.1 Press Release to be issued January 15, 1997
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
INSIGNIA FINANCIAL GROUP, INC.
By: /s/ John K. Lines
-------------------------
John K. Lines
General Counsel
Date: January 15, 1997
FOR IMMEDIATE RELEASE CONTACT: Mr. James A. Aston
Chief Financial Officer
(864) 239-1660
Insignia Completes $109 Million Acquisition of Multi-Family Portfolio in Joint
Venture with Blackstone Real Estate Advisors
Greenville, SC January 15, 1996 - Insignia Financial Group, Inc. (NYSE-IFS)
announced today that on December 31, 1996 it had successfully completed the
acquisition of 25 multi-family properties in joint venture with Blackstone Real
Estate Advisors, a New York based investment banking group. These assets, known
as the GSSW Portfolio, were formerly owned by a joint venture between Great
Southern Life Insurance Company and Southwestern Life Insurance Company, and
consist of 5,710 multi-family apartment units. The total consideration paid for
the GSSW Portfolio was approximately $109 million. Affiliates of Insignia, in
addition to being a general partner in the acquiring entity, became the property
manager for the properties effective January 1, 1997 and also expect to complete
a refinancing of the properties in the portfolio over the next 60 days. In
addition to the benefits associated with its equity investment, Insignia expects
the acquisition to provide recurring annual property management revenues of more
than $1 million. The majority of the 25 property portfolio is based in the
Southeast and Mid- Atlantic regions with concentrations of properties in the
Houston, San Antonio, Newport News, and Greensboro/Winston-Salem markets.
Insignia and Blackstone have an option to buy up to three more assets over the
next 45 days.
In commenting on the acquisition, Andrew L. Farkas, Chairman, Chief Executive
Officer, and President of Insignia said, "We are very excited about completing
this type of acquisition as it further broadens our co-investment program which
we initiated in early 1996. This acquisition is consistent with the strategy
embodied in this program of investing in portfolios of real estate that we
believe have excellent long term equity value. Insignia's breadth of operations
and experience provided our ability to perform and complete all aspects of due
diligence and closing in a short period of time. This agility, coupled with
Blackstone's financial sophistication and strength, proved to be a very strong
competitive advantage."
Insignia also separately announced the acquisition from a joint venture partner
of 40% joint venture interests in CCP III Acquisition LLC and CCP IV Acquisition
LLC. These
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joint ventures were formed in 1995 to purchase limited partnership interests
through registered tender offers in ConCap Properties III Limited Partnership
and ConCap Properties IV Limited Partnership, partnerships which are controlled
by an affiliate of Insignia. Through the buyout of the joint venture partner,
Insignia will acquire approximately 9% and 8% of the total limited partnership
units outstanding in ConCap Properties III Limited Partnership and ConCap
Properties IV Limited Partnership, respectively. This brings the total
percentage of the outstanding limited partnership units owned by an affiliate of
Insignia to approximately 23% and 19%, respectively.
Insignia is a fully integrated real estate services company specializing in the
ownership and operation of securitized real estate assets. As a full service
real estate management organization, Insignia performs property management,
asset management, investor services, partnership accounting, real estate
investment banking, and real estate brokerage services for various types of
owners including approximately 900 limited partnerships having approximately
400,000 limited partners.
Insignia is the largest manager of multi-family residential properties in the
United States and is among the largest managers of commercial properties.
Insignia commenced operations in December 1990 and since then has grown to
provide property and/or asset management services for over 2,500 properties
which include approximately 287,000 residential units (including cooperative and
condominium units), and approximately 107.2 million square feet of commercial
space located in over 500 cities and 48 states.
For more information on Insignia, visit our web site at
http://www.insigniafinancial.com.
