Koll Raises $120 Million for Acquisitions, Debts

NEWPORT BEACH — National property manager Koll, which shelved plans for a public offering last year, said Tuesday it has raised $120 million from other sources to continue its aggressive acquisition strategy and reduce its debt.

The Newport Beach-based company, part of the real estate empire headed by developer Donald M. Koll, received a $95-million credit line from a consortium of international banks led by Bankers Trust Co. of New York.

Koll raised the remaining $25 million by selling stock to its existing financial partners, Freeman Spogli & Co. and Apollo Real Estate Advisors, who increased their stake in the company.

It is Koll’s first major funding arrangement in two years.

The rapidly growing company, one of the nation’s 10 largest property managers, plans to pay off about $45 million in debt and use the rest to acquire several property management and investment advisory companies, chief executive officer Ray Wirta said.

“We are in active discussions on a number of fronts,” said Wirta, who declined to elaborate.

Over the past five years, the company has acquired more than 20 companies worth over $43 million. Last year, Koll began merger negotiations with Chicago-based LaSalle Partners Ltd., a major property management firm. However, that deal never came to fruition.

Koll also registered for a public offering with the Securities and Exchange Commission, but decided to shelve that public offering because of the lukewarm reception initial public offerings were receiving last fall on Wall Street.

The company, which manages more than 185 million square feet of real estate in the United States, has 276 offices and 2,600 employees throughout the nation and in Asia.

As a result of the $25 million stock purchase, Freeman Spogli’s stake in Koll increased to 65% from 62% and Apollo’s stake rose slightly to 16.5%. Koll senior officials own an 18% stake.