Private Investment Trust Formed by Donahue Schriber

NEWPORT BEACH — Shopping center developer and operator Donahue Schriber Realty Group said Wednesday it has formed a privately held real estate investment trust to raise funds to help buy and develop additional retail properties.

The REIT raised $60 million from institutional investors, including the New York State Teachers’ Retirement System and Cambridge American Holdings Limited. Donahue Schriber also secured a $75-million line of credit from BankBoston.

Donahue Schriber’s assets include five shopping centers and a joint venture interest in another retail shopping center, along with three separate parcels of land that are scheduled for development this year. The properties were contributed by Donahue Schriber Realty, which will manage the investment trust.

In Southern California, the 27-year-old company is best known for building and operating properties such as Glendale Galleria, Tustin Market Place, which recently was expanded, and Anaheim Plaza, which was knocked down and rebuilt with Wal-Mart as its anchor store.

Daniel W. Donahue was elected chairman of the investment trust and Thomas L. Schriber becomes president. About 200 Donahue Schriber employees, including 55 at the company’s Newport Beach headquarters, will continue to work at the REIT.

Donahue Schriber recently completed a retail project near San Francisco and is readying a project near Sacramento. The company also plans to build three retail projects in Las Vegas, Donahue said.

“With substantial cash, coupled with a $75-million line of credit and proven management, [the REIT] is well positioned to acquire, develop and operate additional retail properties across Western states,” Donahue said.