PRESS RELEASES

Hines Expands Investment Strategy Throughout Brazil - Announces Two New Logistics Parks in São Paulo

4/23/08

(SÃO PAULO, BRAZIL) – The São Paulo office of Hines, the international real estate firm, announced today the implementation of a nationwide investment program to acquire or develop strategically located logistics parks on major highway intersections in various Brazilian cities to serve the needs of logistics and transportation clients. Currently, the firm has five logistics parks underway or completed in Louveira, Araucaria, Rio, Embu and Manaus. Hines plans to develop an additional 14 parks over the course of the next three years.

Hines also announced that it has broken ground on Louveira Swans Industrial Park and Cajamar Distribution Park, two speculative modular warehousing projects in Louveira, a suburb of São Paulo.

The one-story, 1,048,243-square-foot Louveira Swans Industrial Park, which is situated on a 2,378,824-square-foot site, will be an expansion of the existing Louveira Distribution Park. The project will be constructed in three phases and is slated for completion in December 2009.

Cajamar Distribution Park will contain 1,188,852 square feet in one level. The property is situated on a 3,415,012-square-foot site strategically located on the Anhanguera Highway, near the São Paulo Ring Road, a highway system that surrounds the city’s perimeter. The project will be constructed in two phases and has a December 2009 completion date.

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

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.

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.

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.