PRESS RELEASES

Hines Acquires Leasehold Interest In London’s Cannon Centre

Joint Venture formed With Railtrack to Modernize Train Station and Develop New Office Building

7/30/2002

(HOUSTON, TEXAS) -- Hines, the international real estate firm, announced today that it has acquired from the Marylebone Warwick Balfour Group the long leasehold interest in London’s Cannon Centre. Currently occupying the site are two office buildings totalling 150,000 square feet. Originally constructed in the 1960’s, the buildings sit atop the Cannon Street Rail Station in London’s financial district. In 2005, the office buildings will be demolished to make way for Cannon Place, a new office development.

Hines also announced that it has formed a joint venture partnership with Railtrack Plc, operator of the UK’s railway system, to renovate the Cannon Street Rail Station, and to develop the new eight-story Cannon Place. The building will contain 380,000 square feet of office space. In addition, 30,000 square feet of new retail space will be added to the train station’s Concourse Level. The London-based architectural firm of Foggo & Associates is the architect for the development, and has designed a striking glass façade for this "Class A" building.

"Hines is delighted to have established a relationship with Railtrack, and we look forward to working with them on this and future ventures," said Gerald D. Hines, chairman of Hines. "We are currently involved in several projects around the UK, and view London as a vibrant place in which to conduct business."

Hines opened its European office in London in 1991. Currently, the firm is developing 99 Queen Victoria Street, a speculative office building, and the adjoining 101 Queen Victoria Street, which will house the new Salvation Army Headquarters. This office project, which will be completed in 2004, is also located in London’s financial district, one-half mile away from the Cannon Centre.

Hines Air Property, a Hines subsidiary that focuses on office developments near UK’s airports, has been extremely active with projects including: the recently completed 25,000-square-foot Shackleton House-Bedfont, their first industrial development; the start of construction on the 75,000-square-foot Cargo 777-Poyle development; and their recent joint venture with Prudential Real Estate Company of America (PRICOA) that acquired the Scipher building in Middlesex, England. Scipher, a technology and licensing company, will continue to lease the entire four-story, 90,000-square foot building for a 20-year term.

The firm also has completed or is currently developing projects in The Czech Republic, France, Germany, Italy, Poland, Russia and Spain for a portfolio of approximately 10 million square feet.

Hines is a privately owned real estate firm involved in developing, acquiring, leasing and managing real estate, as well as providing extensive global investment management and advisory services. The Hines portfolio of projects completed and underway includes more than 680 properties representing 217 million square feet of office, mixed-use, industrial, retail and residential properties, as well as large, master-planned communities and land developments. With offices in 76 U.S. cities and 11 foreign countries, and assets in excess of $13 billion, Hines is one of the largest real estate organizations in the world. Access www.Hines.com for more information.