PRESS RELEASES

Hines Signs Nestlé To Occupy Entire BKB Building in São Paulo

Building to be Renamed Nestlé After Anchor Tenant

4/16/08

(SÃO PAULO, BRAZIL) – The São Paulo office of Hines, the international real estate firm, announced today that it has signed a long-term, full-buildinglease with Nestlé, the world's largest food company, for 100 percent of the BKB Building.The lease encompasses 409,000 rentable square feet(38,000 square meters) of the tower located in the Marginal Pinheiros submarket of São Paulo.  This is believed to be the largest office lease ever done in São Paulo.

Approximately 2,000 Nestlé employees will move from their current location just three blocks away, to the property, which will be renamed the Nestlé building, and will allow space for the company’s future growth plans. The move is slated for the second quarter of 2008.

The property was purchased in June 2007 on behalf of the Hines CalPERS Brazil II (HCB II) fund from Banco Itaú, which acquired BankBoston’s banking operations including the BKB Building in 2006.  Designed by the renowned architectural firm Skidmore, Owings & Merrill LLP and Brazilian architect Julio Neves, and completed in 2002, the 29-story building is largely considered an architectural landmark in São Paulo and also throughout Latin America. Its striking architectural elements include the use of curved glass around its landscaped garden, and a bold façade which features granite, modern glazing and stainless steel.

Hines entered the Brazilian real estate market in 1998. Since then the firm has developed more than 12 million square feet (1.1 million square meters) of premier office, industrial and residential space in the country, and currently manages 9.5 million square feet (885,000 square meters) there. Hines has operations in six markets throughout Brazil, including São Paulo, Louveira and Embú (suburban São Paulo), Rio de Janeiro, Curitiba and Campinas. 

The HCB II Fund is an investment vehicle organized by Hines and the California Public Employees’ Retirement System (CalPERS) to invest primarily in Brazil’s office, industrial and residential markets, with the option of extending its reach to Argentina and Chile.

CalPERS is the nation’s largest public pension fund with assets totaling $240 billion, of which $19.7 billion is invested in real estate. The System provides retirement and health benefits to more than one million state and public employees and their families. For further information on CalPERS, please visit the System’s Web site at www.calpers.ca.gov.

Nestlé is the world's foremost nutrition, health and wellness company and has been elected the most admired consumption food company by Fortune magazine in 2007. In Brazil, Nestlé produces and sells milks, coffee, culinary products, chocolate drinks, cereals, biscuits, special nutrition formulae, chocolates, chilled products, ice-cream, FoodServices and PetCare. Nestlé Brasil is ranked 4th in sales and 2nd in volume among Nestlé worldwide markets and has reached R$ 12.4-billion in sales in 2007.

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 1,000 properties representing approximately 416 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 69 U.S. cities and 15 foreign countries, and controlled assets valued at approximately $22.9 billion, Hines is one of the largest real estate organizations in the world. Visit www.hines.com for more information.