PRESS RELEASES

Hines Announces Ground Breaking Of Punto Central

Residential Development Underway in Monterrey

9/9/2005

(MONTERREY, MEXICO) — The Monterrey office of Hines, the international real estate firm, announced today that construction has begun on Punto Central, a signature mixed-use development in the heart of San Pedro Garza Garcia. Last night, Hines hosted a ground breaking ceremony for local and visiting dignitaries including: Hines President Jeff Hines; Vice President and Director General of Hines Mexico Lyman Daniels; CalPERS Senior Portfolio Manager Al Fernandez; and land partner Sandra Zorrilla McLellan.

The landmark development is located on a 17-acre (seven-hectare) site and is the first project to be funded through the recently formed, $100 million HCM Holdings LP, a venture between Hines and the California Public Employees' Retirement System (CalPERS). The fund’s next project will be a residential development in Guadalajara, which is in the design phase, and another residential development approved for Querétaro.

Duda Paine Architects, LLC of Durham, North Carolina, has designed 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 approximately 90 condominium units. Project completion of the first phase is expected in July 2007.

Sandra Zorrilla McLellan said, “We are excited to initiate the development of this land, which has been embraced by my family for generations. What will emerge over the next two years will be a stunning residential extension of an inherently beautiful piece of real estate, and a community for which my family and the city of Monterrey will be proud.”

“This is a special project which will give back to the community and provide its residents with a connection to the natural setting that the Zorrilla McLellan family has preserved for three generations,” said Hines Project Manager Palmer Letzerich. “We plan to introduce the Hines standard of quality to Monterrey.”

Punto Central will include walking/jogging paths, a manmade lake and extensive landscaping that will cover more than 35% of the site. Condominium owners 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.

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. A privately owned real estate firm, Hines is involved in real estate investment, development and property management worldwide. The Hines portfolio of projects completed, underway, acquired and managed for third parties includes more than 800 properties representing over 285 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 63 U.S. cities and 13 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.

CalPERS is the nation's largest public pension fund with assets totaling approximately $196.7 billion, of which $11 billion is invested in real estate. The System provides retirement and health benefits to more than 1.4 million State and local public employees and their families. CalPERS and Hines currently partner in two other joint funds: National Office Partners LP and HCB Interests LP. For more information, visit www.calpers.ca.gov.