SOURCE: Wall Street Journal Online

GE, who has been one of the U.S.'s largest real estate investors for years, is planning to begin investing money belonging to others. Even though this is a difficult time to get into the fund-raising business, they feel they have some assets that will help them face the challenges of a falling market.

One advantage GE believes it has is hundreds of local agents scoping out 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.

As GE is hoping to become one of the big players in real estate asset management firms within five years, they know that entering the market at this time could be difficult. They feel that a first-time fund with no track record would find it much harder than themselves with their proven ability to invest well.

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