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Inlet Track Record: Charter Oak Portfolio, Outlet Malls

Opportunity:

Inlet initiated the purchase of the Charter Oak portfolio of 9 factory outlet malls containing 3.2 million square feet owned by Ohio Public Employees Retirement System and Rothschild Group in early 2003.

Transaction:

• Inlet brought in RFR Holding LLC as a partner and formed COP Holdings. Locker and Richards brought Blackstone Real Estate Advisors on as Financial Partners of COP Holdings. COP Holdings and Blackstone entered a joint venture with Tanger Factory Outlet Centers (NYSE: SKT) to serve as operating partner of the properties.
• The joint venture assumed existing financing from GMAC and obtained additional preferred equity financing from GECC.
• $491 million purchase price represented a 10% cap rate.
• Total transaction capitalization was $512.2 million and closed in December 2003.

Tanger was granted a purchase option which they exercised in November 2005, buying the equity interests and COP Holding.