FRIT Forms Venture With Clarion

Federal Realty Investment Trust, Rockville, Md., has formed a joint venture with Clarion Lion Properties Fund to invest in up to $350 million in retail properties.The fund is looking for stabilized, supermarket-anchored shopping centers in East Coast and California markets, FRIT said. The real estate investment trust and Clarion Lion Properties Fund -- a fund managed by ING Clarion Partners, a New York-based real estate affiliate of the ING Group -- have committed to contributing up to $42 million and $98 million of equity capital, respectively, to acquire properties over the next 24 months, according to FRIT. The REIT has contributed a Montgomery County, Md., property valued at $20.5 million to the venture. FRIT will manage the properties on behalf of the venture and will receive fees in return. "This partnership gives Federal Realty the ability to acquire high-quality, stabilized shopping centers that may not otherwise meet the trust's property operating income growth targets," said Donald Wood, president and chief executive officer of FRIT.