Wells Fargo, Secured Capital Corp Announce Definitive Acquisition Agreement
San Francisco — November 2, 2005
Wells Fargo & Company (NYSE:WFC) and Secured Capital Corp said today they have signed a definitive agreement for Wells Fargo’s real estate investment banking subsidiary, Eastdil Realty, LLC, to purchase the privately-held real estate investment banking firm. The combined company will be known as Eastdil Secured. Headquartered in Los Angeles, Secured Capital Corp is one of the country’s pre-eminent real estate investment banking firms. It is one of the most active firms in investment property sales and debt placement in the western U.S. and the leading national advisor for commercial mortgage loan sales. Secured Capital also engages in investment banking nationwide and raising private equity through its broker dealer, Secured Capital, LLC, which will also be acquired by Wells Fargo. Since January 1998, Secured Capital has completed over 500 transactions totaling over $67 billion, including investment property sales, institutional property financings, mortgage loan sales and investment banking services. Its clients include many of America’s premier real estate owners and investors and major corporations. It has offices in New York, San Francisco, San Diego, Dallas and Orange County, Calif. Headquartered in New York, Eastdil is a pioneer in the real estate investment banking business with national presence in the investment sale and debt placement business. It also has offices in Los Angeles, Washington D.C., Chicago, San Francisco and Atlanta. Since January 1998, it has completed over 500 transactions totaling $95 billion. Together, the two firms are on track to complete transactions of about $60 billion this year. “The combination of Secured Capital and Eastdil will create complementary ‘economies of skill’ to help ensure superior transaction results for our clients,” said David Hoyt, senior executive vice president of Wells Fargo’s Wholesale Banking Group. “Their combined expertise will cover every capital investment transaction business line and every product type in the institutional commercial real estate industry.” “The strength of the new firm will come from the deep team of senior real estate professionals that will be created in this merger,” said Ben Lambert, chairman and CEO of Eastdil. “In combination, this group has unequaled technical and marketing skills, combined with a market leading presence across the country. Together we’ll provide our clients an unprecedented range of capital market execution options.” “We’re confident that the teaming of Secured’s and Eastdil’s real estate professionals will give our clients the best combination of capital market expertise and real estate experience with significant property level deal flow,” said D. Michael Van Konynenburg, president and CEO of Secured Capital. In the combined firm, the Executive Committee will be comprised of Benjamin V. Lambert, chairman; Roy H. March, chief executive officer; D. Michael Van Konynenburg, president and W. Jay Borzi, managing director. Terms of the definitive agreement were not disclosed. Subject to regulatory approval, the acquisition is expected to close early in the first quarter of 2006. Wells Fargo Wholesale Banking -- with $89 billion in assets, and more than 500 locations coast-to-coast -- includes middle market banking, corporate banking, commercial real estate, treasury management, asset-based lending, insurance brokerage, foreign exchange, trade services, specialized lending, equipment finance, capital markets activities, and asset management. Its Commercial Electronic Office (CEO) ® internet portal processes more than one million customer account log-ins a month. Wells Fargo is #1 in market share for middle market commercial customers in the western United States. Wholesale Banking accounts for about a quarter of the total earnings of Wells Fargo & Company. Wells Fargo & Company is a diversified financial services company with $453 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,200 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only bank in the United States to receive the highest possible credit rating, “Aaa,” from Moody’s Investors Service.