PRESS RELEASES

Hines Announces First Development in Monterrey, Mexico

Duda Paine and Landa-García-Landa Selected as Architects

4/20/2005

(MONTERREY, MEXICO) – Hines, the international real estate firm, announced today that it has partnered with the Zorrilla McLellan family to develop a signature mixed-use development named Punto Central, in the heart of San Pedro Garza Garcia, a desirable residential and commercial suburb of Monterrey in northeastern Mexico. The landmark development will be located on a 17-acre (seven-hectare) site.  It is the first project to be funded through the recently formed HCM Holdings LP, which is a venture between Hines and its investment partner, the California Public Employees' Retirement System (CalPERS).

“This land has been in our family for three generations. Hines understood the importance of this project and our dream to create a community that blended seamlessly with the surrounding landscape and community,” said Sandra Zorrilla McLellan. “We took our time to select the appropriate partner, and are certain that the Punto Central development will exceed all of our expectations.”

Duda Paine Architects, LLC of Durham, North Carolina, is currently designing the master plan for Punto Central. Agustin Landa Vétiz of Landa-García-Landa is the local project architect. The project will be built in five phases comprised of condominium units, specialty retail and garden office space. The first phase will include 80 condominium units ranging from 2,200 square feet to 4,300 square feet (200 square meters to 400 square meters).  Construction will begin in the second quarter of this year, and completion of the first phase is expected in April 2007.

Punto Central will include walking/jogging paths, a manmade lake and extensive landscaping that will cover more than 35% of the site. Tenants, residents and visitors will enjoy dramatic views of the surrounding mountains, including the Sierra Madre, Cerro de la Silla, Cerro de las Mitras and the Huasteca.

Monterrey – located 280 miles south of San Antonio, TX, and 580 miles from Mexico City – is considered to be the industrial capital of Mexico and is home to major domestic and foreign corporations.

 “The opportunity to develop this landmark project is unique, given the limited amount of land available in San Pedro,” said Hines Vice President Lyman Daniels. “Punto Central’s park-like setting is designed to be respectful of the surrounding natural landscape and its residential neighbors, while maintaining all the benefits of San Pedro’s modern, cosmopolitan location.”

Hines entered the Mexican real estate market in 1975. Since that time, the firm has completed office, residential and industrial properties in Mexico totaling more than three million square feet and has developed more than 700 acres of land. Currently, the company has operations in eight markets throughout the country including Mexico City, Querétaro, Guadalajara, San Luis Potosí, Toluca, Acapulco, Michoacán and Monterrey.

HCM Holdings LP is a $100 million fund formed in 2005 to invest in the Mexican real estate market.  The fund has an eight-year term and a $200 million capacity, including leverage.

CalPERS is largest public pension fund in the United States with assets totaling approximately $180 billion.  The System provides retirement and health benefits to more than one million California state and public employees and their families. For further information on CalPERS, please visit the System's website at www.calpers.ca.gov.

Hines is a privately owned real estate firm involved in developing, acquiring, leasing and managing real estate, as well as providing extensive international investment management and advisory services. The Hines portfolio of projects completed, underway, acquired and managed for third parties includes more than 700 properties representing over 244 million square feet of office, mixed-use, industrial, hotel, medical, sports facilities and residential properties, as well as large, master-planned communities and land developments. With offices in 69 U.S. cities and 12 foreign countries, and controlled assets valued at approximately $11 billion, Hines is one of the largest real estate organizations in the world. Access www.hines.com for more information.