SOURCE: Wall Street Journal Online

The tough commercial real estate market fund-raising business could be difficult to enter for some but GE feels it will do well for a number of reasons. A falling market poses more challenges but the large and long time real estate investor has a proven track record that should help them in this credit crunch.

One advantage GE believes it has is hundreds of local agents looking into commercial real-estate markets. The funds will get a first look at any potential properties that fit the profile they are hoping to take advantage of. Joe Parsons, chief executive of GE Real Estate's newly formed global investment-management division, said that GE's investment strategy is different from funds focused on distressed situations. Instead of waiting for fire sales, or those properties down about 50% in price, GE is looking at properties discounted in the 10% to 15% range.

GE's goal is to take advantage of the current pricing adjustments while striving to be one of the largest real estate asset management firms within five years. Even GE executives agree that the market is mixed for new funds but are optimistic in their ability to invest well. Mr. Parsons, who recently ran GE Real Estate's North America equity arm, agrees that buying opportunities are scarce right now. "We're hoping the liquidity returns slowly to the market and that presents more opportunity for investing." he said.

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