Inland American invests in Concord Debt Holdings

Inland American Real Estate Trust Inc. has agreed to invest up to $100 million in Concord Debt Holdings LLC, which originates and acquires real estate securities and loans.

Concord, a venture between real estate investment trusts Winthrop Realty Trust and Lexington Realty Trust, said today it is set to receive up to $100 million over the next 18 months, with an initial investment of $20 million.

Under the agreement, additional contributions by Inland American are to be used to originate and acquire additional loans. If certain conditions are satisfied, including payment of Inland American's 10 percent priority return, both Winthrop and Lexington may reduce their investment in Concord to $200 million through distributions of principal payments from the retirement of existing loans and bonds in Concord's portfolio.

Inland American Real Estate Trust Inc. was represented in the transaction by subsidiary Inland Institutional Capital Partners Corp., which raises private equity for Inland's real estate companies and trusts. (AP)