PRESS RELEASES

Hines Sells InPost, 66-70 Avenue Charles de Gaulle in Neuilly-sur-Seine to ING Real Estate Investment Management

03/26/2007

(PARIS, FRANCE) – Hines, the international real estate firm, announced today that it has sold     InPost, located at 66-70 Avenue Charles de Gaulle in Neuilly-sur-Seine, Paris, to ING Real Estate Investment Management, an international real estate company active in investment management, development and finance.  Terms of the sale were not disclosed.  Hines has been retained by the new owner to continue in its role as development manager on the building’s renovation.

The law firm of Lacourte Balas & Associés represented Hines in the transaction.  ING was advised by the law firm of Leboeuf, Lamb, Greene & MacRae.

The six-story, 54,876-square-foot (5,100-square-meter) office building is located on Avenue Charles de Gaulle, the major axis running from the Arc de Triomphe to the La Défense business district, where Hines developed the EDF Tower.  

“I am delighted with this operation which, once it has been renovated, will provide an outstanding office building in Neuilly, reflecting Paris’ economic vitality,” said Olivier de Dampierre, president of Hines France.

Hines hired architects Carlo Maria Natale and Arnaud Doiteau to completely renovate the existing building and design an extension.  The project, currently undergoing restoration, includes 9,684 square feet (900 square meters) of retail space on the ground floor, and 45,192 square feet (4,200 square meters) of office space on five levels, as well as 50 underground parking spaces.  The work began in May 2006, and completion is expected in December 2007.  The French Post Office and the Promod clothing chain have already signed a lease, and Hines’ Paris office will move into the upper floors of the building.

 “Located on the very prestigious avenue leading from Paris to the La Défense business district, this project meets all our selection criteria: excellent location, architectural ambition, modern facilities and services, geared towards the most demanding tenants,” said Laurent Babelon, acquisition director of ING Real Estate Investment Management.

This project represents the first asset sold by the Hines European Value Added Fund (HEVAF).  HEVAF is capitalized with $370 million (€287 million) of equity commitments provided by German and Swiss institutions.  HEVAF will invest primarily in office projects, but there is an allocation for other product types.  Hines will focus on acquiring buildings in Western European countries, targeting France, Germany, Italy, Spain and the UK, and will seek to add value to acquisitions through tactics such as renovation, strategic leasing or re-leasing, improving operational efficiencies and refinancing.

“This transaction proves that HEVAF is a vehicle which can acquire investments with potential and use Hines’ expertise to add value,” commented Bahram Motamedian, the fund manager.

After more than three successful decades in the United States, Hines entered the European market in Berlin in 1991.  Since then, the firm has developed projects in: Barcelona, Berlin, Düsseldorf, London, Madrid, Marbella, Moscow, Munich, Milan, Paris and Warsaw.  The firm’s European portfolio consists of 40 projects totaling more than 12.1 million square feet (1.1 million square meters).

ING Real Estate is part of ING Group, a global financial institution of Dutch origin offering banking, insurance and asset management to over 60 million private, corporate and institutional clients in 51 countries.

Hines opened its office in France in 1995, under the leadership of President Olivier de Dampierre and Managing Director Patrick Albrand.  To date, Hines France has developed more than 1.6 million square feet (150,000 square meters) of office space and has approximately 3.7 million square feet (350,000 square meters) of space currently being developed in the western region of Paris.

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide.  The Hines portfolio of projects underway, completed, acquired and managed for third parties includes more than 950 properties representing approximately 380 million square feet of office, residential, mixed-use, industrial, hotel, medical, retail and sports facilities, as well as large, master-planned communities and land developments.  With offices in 67 U.S. cities and 15 foreign countries, and controlled assets valued at approximately $16 billion, Hines is one of the largest real estate organizations in the world. Visit www.hines.com for more information.