International Forum magazine by Giancarlo Filartiga

ISSUE ONE — JANUARY 15, 2004

INTERNATIONAL

Worldwide coverage. International perspective. Global opportunities.

INSIDE THIS ISSUE: New Funds Hit Europe p2 Korea’s First REIT p4 Argentina Market Snapshot p5

UK Report Gives Thumbs-Up To REIT-Style Funds London—The UK government has taken a step closer to the creation of REIT-style tax-efficient property funds. An independent review commissioned by Chancellor of the Exchequer Gordon Brown to study this possibility has come down firmly in TOP STORY United Kingdom favor of tax-transparent property investment.The review was conducted by Kate Barker, a senior advisor to the Bank of England. The Barker report, released just before Christmas, concludes: “Given the benefits that may result from greater institutional investment, and the role REITs play in other countries' housing economies, there may be merit in the government looking at ways to promote greater interaction between institutional investors and the residential property market.” Because there are no UK tax incentives to counteract the volatility and management costs associated with rental residen-

INTERNATIONAL forum

tial property, investors have tended to shy away from the sector.As a result, the UK is poorly supplied with homes to rent, forcing the vast majority of households into owner-occupation. Brown has long been concerned that this factor inhibits people’s flexibility when reacting to changes in the job market and also increases their vulnerability to changes in interest rates, both of which damage the performance of the UK economy as a whole. The possibility of REIT-style property investment in the UK is welcome news to Prudential, the UK’s biggest institutional investor, with assets of $23 billion in the

“Given the role REITs play in other economies, there may be merit.” Kate Barker

Bank of England UK. Professor Paul McNamara, director of research at Prudential Property Investment Management, says:“We can

readily see the value of such instruments in assisting tactical allocation in both our multi-asset and our property investment portfolios and overcoming many of the liquidity and efficiency problems that have traditionally beset the UK property market.” And Liz Peace, chief executive of the British Property Federation, embraces the possibility of property entering the investment mainstream in the UK. “Similar vehicles in the US and Australia have grown by 918% and 628% over the past decade,” she notes. “Their introduction into the UK would make it easier for institutions and the man in the street to invest in property, providing business occupiers with better property, potentially boosting rented housing supply and delivering exciting new products for investors.”—Graham Parker

LATIN AMERICA Mexican Securitization Market Expected to Reach $1B in 2004 Mexico City—The property securitization market in Mexico is off to a running start. Following a milestone RMBS issuance during the fourth quarter of 2003, Mexico’s first tenant lease-backed securitization is set to go to market in the SECURITIZATION Continued on page 2

For Feedback & News Leads contact if@remediainc.com

GLOBAL INSIDER

Giancarlo Filartiga Mills Corp. is the fastest-growing US REIT, with a $4 billion market capitalization. It has grown into a retail powerhouse with 29 malls totalling 32 million sf and generating $6 billion in gross annual sales. In the past year alone it completed more than 7 million sf of retail space. But until last year the company’s spectacular growth was strictly an American phenomenon.All that changed with the opening of Europe’s largest shopping mall, Xanadu, in Arroyomolinos, Spain, on the outskirts of Madrid. The mall opened 98% preleased and, on completion of the second and third phases—now under construction—it will become a 184,000-sq m (1.98 million-sf) behemoth, anchored by Europe’s largest GLOBAL INSIDER Continued on page 6

➲1 ➲2➲3➲4➲5➲6➲7

For use of original recipient only. It is illegal to forward copies without permission.

NEWS FROM AROUND THE GLOBE

Don’t miss a single issue, subscribe now http://www.remediainc.com/IFsubscriptionform.htm 01.15.04

SECURITIZATION Continued from page 1

GMAC Hipotecaria SA de CV, is a harbinger of things to come. According to Juan Pablo De Mollein, the New Yorkbased associate director and leader of Standard & Poor’s Ratings Services’ Mexican securitization team, total property securitizations in the country are expected to total approximately $1 billion in 2004. Strong demographics fueling a booming housing market and efforts to bring private sector financing sources into the fold are two significant factors that helped bring the arrival of the RMBS market in Mexico. “The Mexican residential market is a very promising one because of demand factors,” notes Paulo Gomes, the Brazil-based head of research for Prudential Real Estate Investors Latin America.“This is a market that is ready to grow.” Up until now, financing for the Mexican

housing market has been met largely by government or quasi-government agencies, Gomes notes, referring to companies like Su Casita known as Sofols.These special purpose finance companies were authorized by the government in the mid1990s and have been funded primarily by a federal housing agency. Domestic securities investors have been receptive. “There is a pretty well-developed institutional investor community in Mexico. The government has been allowing these institutions to increase their private investments, beyond the typical government paper,” notes De Mollein. “And that has opened the demand side for this product. Any kind of securitization going to the market, they find investors are willing to participate.” And American-based investors are among those taking note of the housing sector in Mexico. Its potential growth is what led PREI to establish last summer a joint venture with Corporacion Geo SA de CV, the largest housing developer in Mexico, to acquire land for future development. More recently, Equity International Properties Ltd., Sam Zell’s private company, invested US$31 million in Mexico City-based residential mortgage lender and construction finance company Crédito Inmobiliario SA de CV. It was not Equity International’s first foray into the Mexican residential market, but it did help Credito Inmobiliario buy another Sofol, Terras Hipotecaria, making it the fourth largest Sofol.

INTERNATIONAL forum

For Feedback & News Leads contact if@remediainc.com

coming weeks. While small by American standards, Mexico’s first true RMBS securitization, a roughly US$53.4 million deal originated by Hipotecaria Su Casita SA de CV and

“This is a market that is ready to grow.” Paulo Gomes

PREI Latin America

“This was another way for us to participate in what we think is a very dynamic sector,” says Thomas McDonald, SVP of Equity International in Chicago. “We love the idea that larger banks, both Mexican and, we think, foreign banks, will participate in this sector.” There are plans for Credito Inmobiliario to get into the securitization market, as well, Thomas says, possibly this year. While the focus of the burgeoning Mexican property securitization market may be on the residential side for now, observers agree that a CMBS market isn’t too far behind. There are already signs of it developing, including a roughly US$50 million tenant lease securitization in the works. The deal is backed by leases in three shopping malls, dispersed geographically in Cozumel, Mexico City and Culiacán and owned by GICSA. “All things are in place in Mexico for this market to grow,” Gomes concludes. —Michelle Napoli

EUROPE New Year Means New Funds In Europe For Three Investors London—The New Year’s holiday timeframe has seen a rash of new fund launches in Europe, with major fund managers bringing new products to market hoping to catch new asset allocations. The most significant move is probably Tishman Speyer’s decision to launch a European office fund. Encouraged by the

firm’s track record in managing landmark buildings across Europe including the MesseTurm in Frankfurt, the Sony Centre in Berlin and the Millbank Tower in London, European and US investors rapidly stumped up €400 million ($500 million) for the Tishman Speyer European Strategic Office Fund. With leveraging, the fund will start out with a €800-million ($1 billion) war chest, and it has already bought its first asset, a 16,500-sq m (177,600-sf) office building on Via Santa Margherita in the financial district of Milan.The property, close to the Duomo and the Scala Opera, is 100% leased to Banco Popolare di Verona e Novara. Two established fund managers have also launched new European products. Heitman has joined forces with the First Islamic Investment Bank to launch a second Crescent Euro Industrial fund. The new vehicle will invest approximately €300 million ($350 million) in warehouse/distribution and logistics properties in France, Germany and Italy. Significantly, this is Heitman’s first move into western Europe after developing a strong market position in central Europe. But while Heitman is moving west, another major player is looking to invest in the emerging economies of central Europe for the first time. Orion’s European Real Estate Fund II is seeking to raise €400 million ($500 million) and by leveraging up to 75% of its equity in loans, it will be lookFUNDS Continued on page 3

➲1➲2 ➲3➲4➲5➲6➲7

For use of original recipient only. It is illegal to forward copies without permission.

INTERNATIONAL forum

FUNDS continued from page 2

Don’t miss a single issue, subscribe now http://www.remediainc.com/IFsubscriptionform.htm 01.15.04 annual yield is expected. Corporate restructuring REITs have a fixed life of five years. “We believe the strength of the retail demand for this CR-REIT is indicative of the acceptance that new REIT products have achieved in Korea,” David Schaefer, division director of Macquarie Bank and head of Macquarie’s Real Estate Asia business, said in announcing the listing. “Macquarie believes that the REIT market in Korea will evolve and become a valuable emerging sector.” North American REITs and Australian listed property trusts have been looked to as models for similar investment vehicles around the world in recent years.“The rest of the world is trying to establish REIT-style structures,” notes Steve Mallen, partner and head of global research for Knight Frank in London.“What Macquarie is doing is part of a significant global shift.” —MN

Seoul—Macquarie Bank Ltd.’s property business listed its first Korean real

estate investment trust on Jan. 8, making it the country’s first REIT wholly owned by a foreign manager. Macquarie Central Office Corporate Restructuring REIT’s first purchase is the 23-story Kukdong Building in Seoul’s CBD, for KRW158.4 billion. That makes Macquarie the third-largest foreign manager of investment-grade real estate in Korea, with A$500 million of properties. MCO CR-REIT, listed on the Korean Stock Exchange, raised A$41 million from the Korean domestic retail and small institutional investor community, with the retail portion being 2.25 times oversubscribed. It raised a total of A$95 million of equity, with cornerstone investments coming from Macquarie Bank itself, major Korean institutions such as Samsung Life Insurance, and a US life insurance company. An 11.4%

INTERNATIONAL forum

For Feedback & News Leads contact if@remediainc.com

ing to acquire €1.6 billion ($2 billion) of European property assets. The first Orion fund invested in a spread of industrial, office, residential and retail properties mainly in France, Germany, Italy and Spain, but Orion partner Van Stults said he expects the new fund to increase its exposure to the UK given the market cycle. In addition, the firm will expand its investment markets to include Central Europe. —GP

ASIA Macquarie Continues Expansion; Lists First Foreign-Owned Korean REIT

COST UPDATE Despite the market downturn over the past three years, London still emerges as the most expensive office location in the world in DTZ's seventh annual Global Office Occupancy Costs survey. The cost of providing a single workstation in a prime West End location is now $16,682 per year. The same space in second-place Paris would cost $15,700 per year. However, DTZ head of corporate services John Forrester notes that, “In local currency terms virtually every major center in the world is subject to falling occupational costs per workstation, reflecting economic pressures and reduced tenant demand.” In this year’s survey, DTZ focused on total occupancy costs per workstation rather than unit area in order to more accurately reflect the “true costs of accommodation,” according to the firm. The 10 costliest locations are: London (West End) Paris Frankfurt London (City) Tokyo (Central Wards) New York City (Midtown) Munich Washington, DC Toronto Dublin —GP

➲1➲2➲3 ➲4➲5➲6➲7

For use of original recipient only. It is illegal to forward copies without permission.

INTERNATIONAL forum

Don’t miss a single issue, subscribe now http://www.remediainc.com/IFsubscriptionform.htm 01.15.04 two years, but laws prohibit inflation-based increases. Worth Noting: Percentage of leased properties vs. owner-occupied properties remains very low, especially for large single-tenant and special-purpose properties.

* Figures are averages as of 3Q03 for Buenos Aires; rents are per month

The peso’s fixed exchange rate with US dollar was abandoned in January 2002. Despite its initial plunge in exchange rate and spike in inflation, its value has stabilized, though at lower levels. The government has made strides in improving its economy and banking system; initiatives to restructure country’s debt passed 3Q03. GDP grew approx. 7.3% in 2003 (the region’s highest growth rate) after dropping 10.8% in 2002; GDP growth for 2004 projected at 4.5%. Major Industries: Food processing, motor vehicles, consumer durables, textiles, chemicals and petrochemicals. Infrastructure: Telecommunications improving since opening to competition and foreign investment in 1998. Transportation facilities: railways; highways (24,538 square miles of total 83,180 square miles are paved); ports/harbors; and airports (145 of 1,342 total have paved runways). Crude oil, petroleum and natural gas pipelines. Foreign Ownership of Real Estate: Most acquisition/disposition transactions not restricted; however, real estate concessions related to national privatization efforts may face restrictions. Transactions can be subject to transfer, other taxes up to 2.5% of deal value. Typical Lease Structure: Leases are typically triple-net ranging three to five years. According to Ernst & Young’s report, minimum 36 months required by law for commercial properties. E&Y notes rental rates increase according to stated periodic increases and/or in periodic rent review process, which typically take place every

INTERNATIONAL forum

For Feedback & News Leads contact if@remediainc.com

MARKET SNAPSHOT

ARGENTINA PRIMARY MARKET: Buenos Aires POPULATION: 38,740,807 LAND MASS: South America’s second-largest country covers 1.06 million square miles GEOGRAPHY: 10 hr., 55-min. flight time nonstop from New York City OFFICIAL LANGUAGE: Spanish GOVERNMENT: Republic; three-branch democracy in place since 1983. LEGAL STRUCTURE: Mix of Western European and American legal systems CURRENCY: Argentine peso (ARS)

rgentina is on the cutting edge of Latin America’s legal and financial modernization efforts.According to Ernst & Young’s Real Estate:The Local Global Economy report, the impact of these modernization efforts on foreign ownership, occupancy and investment in real estate has been significant. With attractive current yields and opportunity for long-term appreciation, Argentina is viewed by many industry observers as an excellent opportunity to enter a first-class international market. Economy: Argentina has suffered from inflation, capital flight, external debt and budget deficits over the past decade, heightened by its 2001/2002 monetary collapse.

OFFICE Vacancy*: 20.23% Class A Rental Rates*: US$9.57 per m2 Class A Under Construction: 231,337 m2 (2.49 million sf) Recent Activity: Office buildings are under construction, but activity slowed considerably since devaluation, and new activity has halted. One US developer, Hines, cancelled its 240,000-sf Northpark in Vicente Lopez and is selling the land. Tishman Speyer Properties, in a JV with Urban Yard SRL, put its 830,000-sf Madero IV in Puerto Madero on hold.

INDUSTRIAL Vacancy*: 25% Rental Rates*: US$2.50 – 3.50 per m2 Under Construction: N/A Recent Activity: While 2003's industrial activity was an improvement over the previous year, lease deals remain in the relatively small 10,000-sf to 30,000-sf range. Demand for larger properties has been almost non-existent.—MN Sources: Ernst & Young, Real Estate: The Local Global Economy; Central Intelligence Agency, The World Factbook; CB Richard Ellis; Colliers International; Economic Commission for Latin America and the Caribbean, Preliminary Overview of the Economies of Latin America and the Caribbean 2003

CORPORATE MOVES: > General Motors will invest between ARS40 million and ARS60 million in Argentina in 2004, seeking to increase production of auto parts by 15% and exports by 20% > Volkswagen Argentina will invest ARS600 million over next three years, including expenditures on its General Pacheco and Cordoba plants. > The local unit of French grocer Carrefour SA says it may not open new stores in Argentina “unless there is an improvement in judicial security,” according to news reports. The announcement followed labor disputes and a union’s blockade and picketing of its distribution centers. > Canadian dairy processor Saputo Inc. acquired Molfino Hermanos SA, third-largest dairy processor in Argentina, for US$50.8 million. > Air Canada inaugurated service to Buenos Aires, “the first international carrier to return to Buenos Aires as Argentina’s economy rebounds.” INVESTMENT INFLOWS/OUTFLOWS: > Argentina suffered net outflows of international capital in 2003 for a second year in a row. However, Latin America as a whole saw capital inflows rebound somewhat during 2003, a trend expected to continue in 2004.

➲1➲2➲3➲4 ➲5➲6➲7

For use of original recipient only. It is illegal to forward copies without permission.

INTERNATIONAL forum

Don’t miss a single issue, subscribe now http://www.remediainc.com/IFsubscriptionform.htm 01.15.04

AUSTRALIA Adelaide—Australian Prime Property Funds became Westfield Trust’s new joint venture partner in the Westfield Marion super-regional shopping center in Adelaide, South Australia. APPF bought its 50% stake in the 1.28million sf property from Commonwealth Funds Management for A$323 million. Brisbane—Australian urban developer Delfin Lend Lease was selected by Hancock Group Investments Pty to turn a 2,000-hectare pine plantation into one of the nation’s largest masterplanned communities.The Brisbane/Gold Coast Corridor property will ultimately provide housing for about 38,000 people along with commercial, retail, educational and community facilities.

CANADA Toronto—Trizec Canada Inc. agreed to transfer its interest in the iconic CN Tower in Toronto back to its landlord, Canada Lands Co. CLC Ltd., in a transaction expected to close this quarter.

EUROPE London—Struggling car manufacturer MG Rover has raised $77 million (£42.5 million) through a sale/leaseback as part of its massive Longbridge plant near

INTERNATIONAL forum

Birmingham. St. Modwen Properties has bought 228 acres of land housing 4.3 million sf of factory buildings. In return it granted MG Rover a 35-year lease at an initial rent of $6.5 million (£3.6 million) per annum with annual fixed uplifts and an option to renew at expiration. London—German open-ended property fund Commerz Grundbesitz Investmentgesellschaft has signed a $2.4 billion (£1.4 billion) funding agreement for Chelsfield’s White City retail development in West London. On completion in 2007, White City will provide 1.4 million sf of new space, broken up into a million sf of retail, 220,000 sf of restaurants and catering space, 100,000 sf of cinema and leisure space and a 20,000-sf library/gallery. London—Canary Wharf is to sell two office towers to Royal Bank of Scotland for $2 billion (£1.1 billion). 25 Canada Square, totalling 1.2 million sf, is leased to Citigroup as its European headquarters at $79 million (£44.9 million) per year and 5 Canada Square, totalling 515,080 sf, is leased to Credit Suisse First Boston at $35 million (£19.7 million) per year. Paris—Kingfisher subsidiary BUT has signed up as the first occupier at Magna

Park Pagny, the 3.25 million-sf distribution park planned by Wal-Mart’s European property arm Gazeley for a 360-acre site located between Beaune and Dijon in Bourgogne. BUT will occupy a 258,000 sf (24 000 sq m) unit scheduled for completion in July 2004, paying a rent of $5 per sf (€45.50 per sq m) for a nine-year lease. Milan—Doughty Hanson & Co. Real Estate has sold the 355,080-sf (32,990sq m) L'Oréal Italia headquarters building on Via Primaticcio in Milan to the German open-ended fund, WestInvest Gesellschaft für Investmentfonds for more than $86 million (€70 million). Prague—London-based Patron Capital made its first major investment in the Czech Republic, paying $22.9 million (€19.2 million) for the Prague stock exchange building, known locally as Burzovni Palac. The 108,000-sf (10,000sq m) building is fully leased and in addition to the Prague Stock Exchange, tenants include Deloittes, VUB Bank, Etel, and SCP, the government-owned securities processing operation.

FAR EAST/INDIA Changzhou, China—London-based Scarborough Property Co. and Hong Kong-based Top Spring

For Feedback & News Leads contact if@remediainc.com

International Corp. have won planning permission for their 4 million-sf Landmark Commercial Center. Construction will commence in July 2004 on the 2.5 million-sf (232,000 sq m) first phase of retail, commercial, hotel and residential development.

LATIN AMERICA Buenos Aires—IRSA Inversiones y Representaciones SA, the largest real estate company in Argentina, has increased its investment in Banco Hipotecario SA by acquiring US$5.3 million of shares and warrants from EMOF LLC and Quantum Industrial Partners LDC, two investment funds of financier George Soros.With the buy, IRSA and subsidiary Ritelco SA own a combined 9.97% stake in the Argentine mortgage bank, which is 44% owned by the government. Mexico City—Pactiv Corp., a specialty packaging products manufacturer, leased the 66,000-sf Building II at Mesquite, a 345,000-sf Mexico City development of AMB Property Corp. and local partner G.Accion.The team is developing two more buildings, totaling 620,000 sf, in Mexico City’s San Martin Obispo Industrial Park. Agave 3, the first building with 224,000 sf, is now 100% pre-leased to Kraft Foods Inc.

➲1➲2➲3➲4➲5 ➲6➲7

For use of original recipient only. It is illegal to forward copies without permission.

GLOBAL TRANSACTIONS

INTERNATIONAL forum

Continued from page 1

indoor ski slope.Already, some of the innovations seen in Madrid are being incorporated into Mills’ US projects. For instance, the planned 4.75-million sf Meadowlands Xanadu mall in New Jersey will feature an indoor snow dome. Mills sees Xanadu as a springboard for a wider European expansion, and Florida-based managing director Giancarlo Filartiga is actively looking for more projects. Q: Leisure is a key part of the mix at Xanadu. Is that typical of the Mills approach? A: The leisure element is a trademark, but it doesn’t always have to be a snow attraction—it could be ice skating or something else.The important thing is that we develop unique properties: destination retail and leisure schemes. Q: How does this mix affect your trading characteristics? A: The shopping-center market in the US is much more saturated than in Europe, but even there our malls draw on a four-hour catchment, with an average spend of $350 per visit.

in the UK, and are currently evaluating the Ravenscraig site at Glasgow. But Spain and Italy will remain our main focus in Europe. We’re working on projects in both those markets and hope to announce one shortly. Q: How are you structuring your European expansion? A: Xanadu is the first project for Mills Global, a wholly owned subsidiary. At the moment we have individuals working out of Milan, Turin, Paris and Barcelona. Eventually Mills will establish a European headquarters office. But it’s important to note that we always work with a local partner. Q: How does that work? A: Xanadu was a typical case where the local partner puts in the land and Mills Global builds and operates the center. Future opportunities will probably be a variation on this format. In Madrid we effectively own two-thirds of the mall and one-third of the snow dome. The local partner feels comfortable with Mills Global because we are an owner/operator.

Q: Do you see potential in Eastern European markets? A: Yes, these are emerging markets and there seem to be opportunities. Poland has attracted one of the highest number of foreign investors in Europe. Of the 20 largest retailers in Europe, 12 are already established in Poland, and many new retailers are seeking to enter the market. According to some institutions tracking this growth, such as GfK Polonia, the share of foreign retailers in Poland soared from 0% as late as 1990 to 50% in 2002. But, although these areas seem to currently offer development opportunities, Mills Global remains focused on the Iberian Peninsula and Italy. Q: With the exception of Wal-Mart and Gap, few US retailers have made a big impact in Europe. Do you think others could succeed there? Could some retailers you work with in the US follow you across the Atlantic? A:The reason Wal-Mart has done so well in Europe is that it translates well with its European counterpart, the Hypermarket.As Wal-Mart does this a little better, one has seen widespread acceptance of this brand. Europeans tend to be provincial in terms of retail. Assuming that you could attract a few key US-based retailers to go to Europe with you, there’s no guarantee that the market will accept them. Accordingly, if we were to undertake this effort, we’d need to do it carefully.—GP

Q:Where is your next port of call? A: We looked at a number of opportunities

Q: What attracts Mills to the Mediterranean markets? A: This region experiences strong GDP growth, increasing disposable income, good demographics and are, in a way, underretailed, in particular if we compare them to more mature markets such as the US, UK and France.

INTERNATIONAL forum

For Feedback & News Leads contact if@remediainc.com

Q: Is Xanadu the same? A: It’s early, but the El Corte Ingles sports store and the anchor cinema are the top performers in their chains.

Dear Reader: Welcome to INTERNATIONAL forum, our new online newsletter. As the business of real estate becomes more international in scope, we think you’ve been looking for something like this: global news and analysis on commercial real estate in one convenient format. Until now, there’s been nothing that publishes this kind of information on a regular basis. This newsletter is written by Michelle Napoli in New York City and Graham Parker in London—seasoned real estate reporters with long histories at Real Estate Media Inc. They’re supported by our exclusive International Editorial Advisory Board (see page 7), a select group of key executives who offer insight and guidance. We value your participation, too. If you have news or would like to share feedback, contact us at if@remediainc.com. We look forward to bringing you cuttingedge news in future issues. Thank you. Jonathan A. Schein President and CEO Real Estate Media Inc.

➲1➲2➲3➲4➲5➲6 ➲7

For use of original recipient only. It is illegal to forward copies without permission.

GLOBAL INSIDER

Don’t miss a single issue, subscribe now http://www.remediainc.com/IFsubscriptionform.htm 01.15.04

INTERNATIONAL forum

INTERNATIONAL forum Editorial Advisory Board Vol.1 No. 1

President & CEO: Jonathan A. Schein Group Managing Director: Michael G. Desiato REAL ESTATE MEDIA ONLINE NEWLETTER DIVISION Vice President: Anthony Karwoski Editorial Director: Jackie Day Editors: Michelle Napoli; Graham Parker Creative Director: Scott Thompson For Editorial Feedback & News Leads: Contact if@remediainc,com

WILLIAM BANNON

PEGGY BINZEL

ALESSANDRO BRONDA

MILTON CATIONS

JOHN COPPEDGE

US Investments Liaison Grubb & Ellis Co./Knight Frank LLP

CEO CoreNet Global

Head of European Research Catella Property Group

Managing Director Property Dynamics

EVP, International Operations Cushman & Wakefield

Michelle Napoli covers: Latin America Canada United States Australia

Graham Parker covers: Europe Mid East India/Asia South Africa Russia

Subscriptions: Subscribe online at http://www.remediainc.com/IFsubscriptionform.htm for $695 per year (24 issues) or contact Biddy Law at 212.929.0608. For Advertisement Opportunities: Contact Anthony Karwoski at 212.645.3825 or akarwoski@remediainc.com WILLIAM KISTLER

MICHAEL LAFITTE

CHRISTOPHER MERRILL

ROBERT I.S. MEYER

DALE ANNE REISS

President Urban Land Institute - Europe

President, Global Services Trammell Crow Co.

Managing Director Heitman LLC

Principal Macquarie Capital Partners Ltd.

Global Director, RE Hospitality & Construction Ernst & Young Real Estate Group

For Reprints: For quantities of 500 or more, please contact our Reprint Division, via email at reprints@remediainc.com Real Estate Media Online Newsletters: NET LEASE forum; MULTI HOUSING forum; GlobeSt. WEEK; INTERNATIONAL forum. Other Real Estate Media Products: Real Estate Forum, GlobeSt.com, Real Estate Mid-America, Real Estate New Jersey, Real Estate New York, Real Estate Southern California, RealShare Conference Series, Forum PLUS Leadership Guides

JEFFREY H. SCHWARTZ

STEVEN A. SWERDLOW

MICHAEL J.G. TOPHAM

GILES WRENCH

President, International Operations; President & COO, Asia ProLogis

President, Global Corporate Services CB Richard Ellis Inc.

EVP/Partner, European Region Hines

Director, International Corporate Real Estate ATIS/CRESA Partners

INTERNATIONAL forum

For Feedback & News Leads contact if@remediainc.com

➲1➲2➲3➲4➲5➲6➲7

For use of original recipient only. It is illegal to forward copies without permission.

These professionals have generously agreed to contribute their expertise to assist us in providing subscribers with a competitive edge in the global commercial real estate business.

JANUARY 15, 2004