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May 20, 2007
Inland getting into prison development
Inland getting into prison development
May 19, 2007
By Alby Gallun
http://www.chicagobusiness.com/cgi-bin/news.pl?id=25056
Inland Group Inc. wants to spend some time behind bars.
Known mainly for its far-flung shopping center empire, the Oak Brook-based company is getting into the prison development business. After falling short in a bid to acquire Florida-based prison owner CentraCore Properties Trust last year, an Inland Group affiliate recently hired three CentraCore executives, including its president and CEO, to start up its own prison development business.
The appeal: With overcrowding at many state prisons, it’s a growing industry, not to mention recession-proof.
“There is a tremendous need for correctional facilities in Texas, Oklahoma, Utah, Idaho and California,” says Chuck Jones, president and CEO of Inland Public Properties Development Inc., a unit of Inland American Real Estate Trust Inc.
Mr. Jones, CentraCore’s former president and CEO, joined Inland American earlier this year after selling his company for $356 million to Florida-based Geo Group Inc., a prison owner and operator. Inland American had bid for CentraCore last year, but walked away empty-handed.
The new Inland unit will build and own prisons and other government buildings, mainly at the state and local level. It will lease the properties, not run them.
“We’re doing exactly the same thing that we were doing before. It’s just a different platform,” says Mr. Jones, 58, who is based in Austin, Texas. “I would be disappointed if by the end of ’08 we haven’t done somewhere between $300 million to $400 million in new projects.”
Launched in 2005, Inland American is Inland Group’s fourth and largest real estate investment trust (REIT), with a goal of raising more than $10 billion in equity from investors.
Though Inland Group has focused chiefly on shopping centers over the years, Inland American has been buying a wide range of property types, including industrial, office and apartments. In March, it agreed to acquire Winston Hotels Inc., a Raleigh, N.C.-based hotel REIT, for about $440 million.
Posted by lois at May 20, 2007 10:57 AM