USAA Real Estate Company Announces Oversubscription To US Industrial REIT II


    San Antonio, TX – January 10, 2008 – USAA Real Estate Company announced today the successful conclusion of fundraising for the US Industrial REIT II. The fund has raised $450 million in equity commitments from ten institutional investors including domestic pension funds, insurance companies and other fund investors, $50 million more than originally planned.

    US Industrial REIT II invests in high quality bulk distribution properties located in major markets throughout the United States. The REIT continues to actively pursue acquisitions and development opportunities, as it continues to invest primarily in single and multi-tenant industrial distribution buildings of 250,000 square feet and larger in high growth target markets. The total REIT investments, once fully invested, are estimated to be approximately $1.1 billion. Currently the fund includes 17 assets totaling over 8.5 million square feet and is 98% occupied. The properties are located in Atlanta, Dallas, Fresno, Harrisburg, Houston, Los Angeles, Louisville, Memphis and Nashville.

    “We are pleased to have both foreign and domestic pension and institutional investors join us in US Industrial REIT II” says T. Patrick Duncan, President and CEO of USAA Real Estate Company. “The Fund has been very successful adding high quality bulk distribution investments even through the fund raising stages. We look forward to the successful completion of the investment and development period which is expected to be completed within the next 12 to 14 months.”

    In 2007, USAA Real Estate Company successfully sold its first bulk industrial REIT, US Industrial REIT I, which consisted of a 10.6 million square foot, 23 property U.S. supply chain, class A industrial portfolio representing a net return to investors in excess of 26%.

    USAA Real Estate Company has sponsored fund and separate account investments on behalf of foreign and domestic institutional investors in office, industrial, retail and hospitality assets. USAA Real Estate Company has approximately $4 billion in owned and managed assets under management and provides acquisition, build-to-suit and development services for corporate and institutional investors. The USAA portfolio consists of office, industrial, retail and hotel properties.

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