PRESS RELEASES

Palencia Expanding and ICI Homes to Build Within Award-Winning Community

1/26/2006

(ST. AUGUSTINE, FL) — Hines, the international real estate firm and developer of Palencia in St. Johns County announced today the 850-acre expansion of the award-winning community. It was also announced that Florida-based ICI Homes will construct 600 residences in the new area.

“Ensuring that this beautiful land adjacent to Palencia will be developed with the same care and quality as the original parcel is as important to Hines as it is to all the current home and property owners within Palencia. We are excited to expand our presence and reputation in St. Johns County with this key acquisition and opportunity,” commented Hines Project Manager Lane Gardner.

This newest phase of Palencia consists of 641 homesites and will feature over a mile of frontage along the scenic Tolomato River and a section of the Intracoastal Waterway, including the Pine Island Fish Camp. As part of this expansion, a new swim-and-fitness facility, additional parks and trails and other amenities will add to the overall master plan.

“ICI is one of Florida's largest builders and has been a standard-bearer of excellence in homebuilding since 1980,” said Hines Senior Vice President Michael Harrison. “Their reputation of the highest quality craftsmanship, innovative design and personalized attention to detail is an excellent fit for a Hines community and especially for Palencia.” ICI has engaged Hines to act as development manager for the design and construction of the infrastructure, amenities and for site preparation.

“We are pleased to join Hines in continuing to make Palencia one of Northern Florida’s best communities,” said ICI President Mori Hosseini. “We do everything we can to provide quality long-lasting home products with extraordinary custom design choices.”

This acquisition is a natural expansion of Palencia, recently honored with a Best in America Living Award for smart growth from the National Association of Home Builders. Upon completion, Palencia will comprise approximately 2,200 acres and 2,400 residential units including, single-family homes, condominiums, live/work units, and town homes. More than 300,000 square feet of ancillary retail and office space round out the mix.

Palencia’s Village Center is home to the current swim and fitness facility, a tennis center, an athletic park, and the scenic Village Green, including a promenade with abundant palm trees and numerous park benches overlooking Palencia Lake and the 9th fairway and green of the private golf course.

The Palencia Club, the community’s exclusive championship golf club, features a demanding 7,017-yard, Arthur Hills-designed golf course that winds through 200-year-old maritime oak trees and along the Intracoastal Waterway. The private golf club encompasses 33,000 square feet and is home to a members-only dining room, spacious banquet facilities, and the Café on the Green.

Ranked in the Top 100 Builders in the nation, ICI Homes is always on the cutting edge of new home design and technology. ICI Homes takes pride in offering a wide variety of architectural styles and floorplans to match each individual's lifestyle and price range. Since 1980, homebuyers have trusted ICI Homes to build their homes throughout the state of Florida. ICI Homes caters to buyers of all kinds who seek quality, service and value. A continued mission of excellence has made ICI Homes one of Florida's most successful homebuilders and developers. Access www.icihomes.com for more information.

Hines is a privately owned real estate firm 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 830 properties representing over 330 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 64 U.S. cities and 14 foreign countries, and controlled assets valued at approximately $11.7 billion, Hines is one of the largest real estate organizations in the world. Access www.hines.com for more information.

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