PRESS RELEASES

Hines European Development Fund Acquires Property in London

04/19/2007

(LONDON, UK) – The London office of Hines, the international real estate firm, announced today that it has acquired Chichester House in London from Bishopswood Properties, a wholly owned subsidiary of GE Real Estate. The eight-story, 70,000-square-foot (6,503-square-meter) office and retail building is located in central London’s High Holborn neighborhood, in close proximity to several tourist attractions including Covent Garden and the British Museum, and midway between the City and West End. The property was purchased by Hines European Development Fund II (HEDF II), a Delaware Limited Partnership.

The building is empty, having been vacated by UK lawyers Reynolds Porter Chamberlain during 2005.

Bishopswood Properties was advised in the sale by Orchard Street Management and Jones Lang LaSalle.

Hines UK Director Andrew Reynolds said, “This acquisition secures our commitment to acquire high potential investments in a strongly competitive London marketplace. We now look forward to working with our retained advisers to create a high-quality commercial development to fulfill the demand for high-end office space.”

As a result of its first closing in March 2007, HEDF II is capitalized with $639 million (€470 million) of equity commitments provided by North American and European institutions.  HEDF II will invest in office development projects as well as the development of mixed-use complexes located in Western European countries, targeting France, Germany, Italy, Spain and the UK.

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, Frankfurt, London, Madrid, Marbella, Moscow, Munich, Milan, Paris, Prague, and Warsaw.  The firm’s European portfolio consists of 40 projects totaling more than 12.1 million square feet (1.1 million square meters).

Hines opened its office in the United Kingdom in 2000.  To date, Hines UK has developed more than 283,200 square feet (26,310 square meters) of office space and has approximately 1.6 million square feet (150,960 square meters) of space currently under development.

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.