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Allstate unloads properties
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September 28, 1998: 6:15 a.m. ET
Insurer sells real estate portfolio to Westbrook Partners for nearly $1B
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NEW YORK (CNNfn) - Allstate, the nation's second-largest personal insurer, agreed Monday to sell the last of its investment property portfolio to Westbrook Partners, a privately held real estate investment fund, for nearly $1 billion.
The 10 million square foot portfolio includes 95 properties such as Allstate Plaza, in Glendale, Calif., O'Hare Plaza in Chicago and Regents Square of La Jolla, Calif.
Three of its properties are owned by the Allstate Retirement Plan and the Agents Pension Plan of Allstate Insurance Co.
Under terms of the deal, Allstate will sell the portfolio for $965 million. The company, however, will retain about $150 million interest in the properties.
"Allstate's real estate portfolio has generated remarkable returns for the company," said Casey Sylla, Allstate's chief investment officer. "This sale consummates the repositioning of our real estate portfolio, and we believe it is in the best interest of our customers and shareholders."
The sale does not include corporate properties such as Allstate's Northbrook headquarters.
Allstate assembled its real estate portfolio in the early 1990's. After the sale to Westbrook, Allstate's portfolio will include about $1 billion in real estate equity securities, which are not being sold. The company also will retain its $4 billion in commercial mortgages and commercial mortgage backed securities.
Last week, Allstate announced that Jerry Choate, its chairman and chief executive officer, will retire by the end of the year.
The company's board voted to elect Edward Liddy to succeed the 60-year-old Choate on Jan. 1, 1999. Liddy, 52, is Allstate's president and chief operating officer.
Shares of Allstate (ALL) closed down 3/8 at 41-13/16 Friday on the New York Stock Exchange. 
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Allstate
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