Keystone to Form New Joint Venture

Keystone Property Trust, a real estate investment trust based in West Conshohocken, Pa., has announced its intention to form a joint venture with the Mercantile Safe Deposit and Trust Co. as trustee for the AFL-CIO Building Investment Trust.Under the terms of the agreement, Keystone will contribute a $90 million portfolio of properties that are located primarily in Indianapolis, and the venture will have the capacity to acquire an additional $120 million of properties, the REIT said. Keystone will retain a 20% equity interest, and the AFL-CIO BIT will contribute the remaining 80% of the equity. "I believe that the joint venture model is a good one for industrial REITs, and this venture represents a natural step in our evolution as a focused owner/operator of industrial properties," said Jeffrey E. Kelter, president and chief executive officer of Keystone. Keystone can be found on the Internet at http://www.keystoneproperty.com.