PRESS RELEASES

Hines Announces Barcelona's Largest Shopping And Leisure Center, Diagonal Mar, Is Now 75% Leased

11/28/2000

HOUSTON, TEXAS - Hines, the international real estate firm, announced today that it has leased 75% of its Diagonal Mar Centre, the largest shopping and leisure center in Barcelona and one of the largest regional malls in Europe. The three-level center, which is scheduled to open in 2001, will contain more than 240 stores, an extensive array of restaurants and leisure establishments, an AMC multiplex cinema with 18 theaters and an Alcampo hypermarket.

According to Hines' Retail Project Manager Tom Roth, the most prestigious retail chains in Spain and in Europe are expanding into the 935,000-square-foot Diagonal Mar Centre. FNAC, Inditex Group, Cortefiel Group, Alcampo, AMC Cinema, Furest, Mango, Tous and 80 other stores have already reached agreements with Hines to occupy space in the center.

Daniel Pallas, director of Alcampo at Diagonal Mar, stated that "Diagonal Mar represents the opportunity to participate in a high-quality and prestigious project, in a new area that is transforming towards modernity," an opinion shared by the president of the North American movie company, AMC Europe, Bruno Frydman. Frydman added that " Diagonal Mar Centre will be one of the best and most exciting leisure centers in Spain."

In addition to FNAC, Inditex (Zara, Massimo Dutti, Springfield, Bresca, Pull and Bear), Cortefiel Group, Alcampo, AMC Cinemas, Furest, Mango and Tous, Hines and its exclusive leasing agent, the Larry Smith Group, have signed leases with a diverse group of prestigious international retailers including: Artesanos Camiseros, Au Pariel du Meme, Belros, Bernat Rubí, Bershka, Biche de Bere, Bluebird, The Body Shop, Café di Torino, Café y Té, Ca La Lluïsa, Camper, Casanovas, D-409, David Grau, Farggi, Forn de Pa Bou, Gala, Giacomelli, Häagen Dazs, H&M, Hobby Zoo, Il Gelato, Intimíssimi, Jean Louis David, Lacoste, La Retoucherie de Manuela, L'Occitane, Mandarina Duck, Mango, Mc Donalds, Miró, Optica 2000, Oro Vivo, Petit Bateau, The Phone House, Prenatal, Pressto Sagardi, Swatch, Tapasbar, Tascón, TKB, Toscana, VisionLab, Xavier Pujol, Yves Rocher and Sgel.

Diagonal Mar Centre, the only shopping center with views of the Mediterranean Sea, will also include a 5,000-car parking garage, the largest underground parking garage in Spain. The center's lifestyle environment, its design and diverse merchandising are totally new to Spain. It is estimated that the center will attract more than 20 million visitors per year, drawing customers from the Barcelona metropolitan area, from across Catalonia and from the international tourist market. Additionally, independent studies of Diagonal Mar Centre anticipate the creation of 2,500 new permanent jobs, identifying the shopping center as the principal generator of direct employment in this new neighborhood of Barcelona.

"Diagonal Mar is a new and unique concept in Barcelona combining hotel, retail, housing and office components into one master-planned community covering the equivalent of 15 city blocks. In addition to the retail portion, Diagonal Mar will include 1,400 new residential units; 900 new hotel rooms in three hotels; two new office towers; the planned Convention Center and Congress Center for the City of Barcelona; and Parc Diagonal Mar, the third largest park in the city," explained Jay Wyper, executive director of Hines-España.

Hines is a privately-owned real estate firm involved in developing, managing, leasing and acquiring real estate, as well as providing a wide range of advisory services. In addition to the 4.2 million-square-foot Diagonal Mar Project, the firm has developed two other sizeable mixed-use developments in the U.S., the famed Gallerias in Houston and Dallas. The Hines global portfolio currently includes more than 640 properties representing 209 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 72 U.S. cities and 11 foreign countries, and assets in excess of $10 billion, Hines is one of the largest private real estate organizations in the world. Access www.Hines.com for more information.