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: April 29, 1997
(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
______________________________________
<PAGE>
Item 5. Other Events
On April 29, 1997, Insignia Financial Group, Inc. ("Insignia") completed
the acquisition of a portfolio of property management rights from The Related
Group of Florida ("RGF"). Insignia also agreed to acquire certain general
partner interests in the partnerships owning some of the managed properties of
RGF later in 1997.
Item 7. Financial Statement and Exhibits
(c) Exhibits
Exhibit No.
99.1 Press Release dated April 29, 1997
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, 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: May 14, 1997
FOR IMMEDIATE RELEASE Contact: James A. Aston
April 28, 1997 Chief Financial Officer
Insignia Financial Group
(864) 239-1661
Jorge Perez, Chairman
The Related Group of Florida
(305) 460-9900
Insignia Announces Acquisition of Portfolio of General Partnership Interests and
Management Rights from The Related Group of Florida
Greenville, South Carolina -- April 28, 1997. Insignia Financial Group,
Inc. (NYSE:IFS) announced today that it has closed the acquisition of a
portfolio of property management rights and agreed to acquire certain general
partnership interests in the partnerships owning some of the managed properties
from The Related Group of Florida ("RGF") later in 1997. The transaction
includes the management of approximately 10,300 units of multifamily residential
housing, all of which are located in the state of Florida, with the majority of
the assets located in Dade County. At the request of the seller, the purchase
price has not been disclosed. Insignia projects that revenues generated by
management of the portfolio will approximate $3.6 million per year. The
geographic concentration of the assets in the Florida area is expected to
produce very favorable operating margins.
In addition to the acquisition of the assets described above, IFS and RGF
have formed a joint venture which will be the provider of management services to
many future properties developed and owned by RGF, as well as other future third
party fee management opportunities generated by RGF. The joint venture entity,
Insignia/Related, L.P. ("IRLP"), will have the right to purchase management
opportunities from RGF and to otherwise provide the management services for RGF
properties. IRLP will be controlled by IFS and owned in majority by IFS. It will
be personally advised by Jorge Perez, Chairman & Chief Executive Officer of RGF.
Mr. Perez has advised IRLP that he believes there to be a minimum of an
additional 3,000 units available for long term management by IRLP coming on-line
during the next 18 months, most of which are already in development by RGF.
Andrew L. Farkas, Chairman, President & Chief Executive Officer of IFS
said, "The Related Group of Florida acquisition is a textbook transaction for
Insignia. It is representative of our ability to continue to acquire portfolios
of controlling interests in real estate properties and to provide long term
servicing for those properties, at acquisition multiples well within our
established parameters. In addition, the creation of IRLP with Jorge Perez has
established a pipeline of continued growth that will provide Insignia with
ongoing opportunity to add to our portfolio of managed properties well beyond
the 10,300 units included in this core acquisition. The Related Group of Florida
and Jorge Perez are the top developers and owners of multifamily residential
property in the State of Florida, both in terms of development volume and
quality, and it is a privilege to be able to work with them, as partners, well
into the future. I believe that it is also noteworthy that Insignia and The
Related Group have continued to try to find ways to work together, even after
the termination of broader acquisition discussions that took place last summer.
My respect for Jorge Perez is enormous, and I look forward to continuing to
expand the scope of our relationship well into the future."
Jorge Perez, Chairman of RGF said, "This transaction is representative of
my strong belief in the management capabilities of Insignia. I look forward to
working to develop greater depth and breadth in our relationship with Insignia."
The acquisition of RGF is the sixth strategic growth initiative announced
by Insignia in just the last four months, and is the first multifamily
acquisition this year. It follows the announcements of (i) the acquisition of
Rostenberg-Doern, the Westchester based commercial property services firm, by
Insignia/ESG in January; (ii) the acquisition of HMB, the Denver based
commercial property services firm which included 1.1 million square feet of
controlled management by Insignia Commercial Group in March; (iii) the
acquisition of Frain Camins & Swartchild, one of the leading commercial property
services and tenant representation firms in the Chicago area by Insignia/ESG in
March; (iv) the announcement of an agreement in principle between Insignia
Properties Trust and Angeles Mortgage Investment Trust to merge the two
entities, leaving Insignia with control of in excess of 80% of the new entity,
in March; and (v) the announcement of the establishment of a major new
commercial property services presence in the Phoenix, Arizona market in April.
With corporate headquarters in Greenville, South Carolina, Insignia
Financial Group, Inc. is a fully-integrated real estate services company.
Insignia is the largest manager of multifamily residential properties in the
United States and is also among the largest managers of commercial properties.
Insignia commenced operations in December 1990 and has since grown to provide
property and/or asset management services for over 2,900 properties which
include approximately 255,000 residential units (including cooperative and
condominium units), and approximately 119.7 million square feet of commercial
space located in over 500 cities and 48 states.
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