Benson Elliot completes first German investment with the acquisition of Düsseldorf’s Nikko Hotel

Fund demonstrates confidence in the European hospitality market

9 February 2007 — Benson Elliot Capital Management announced today that it has completed the off-market acquisition of Düsseldorf’s Deutsch-Japanische Center, incorporating the well-known Nikko Hotel, on behalf of its €335 million fund, Benson Elliot Real Estate Partners II (“the Fund”).

The mixed use development is situated in the centre of Düsseldorf’s shopping district, close to the renowned Königsallee, and comprises the 301 bed, five star Nikko Hotel Düsseldorf, 13,000 sq m (140,000 sq ft) of fully let office and retail space and a 560 bay car park. The majority of the retail space is let to luxury retailer Mitsukoshi, serving the largest Japanese community in Europe.

Benson Elliot’s acquisition was made in partnership with an affiliate of Event Holding, a Cologne based hotel owner/operator, and represents a new partnership between the two companies. The partners intend to pursue other hospitality investments together in western Europe.

This is Benson Elliot’s second transaction, following its investment in Denmark with leading Danish developer Sjælsø Gruppen.

Marc Mogull, Managing Partner of Benson Elliot, said: “The fund’s investment programme has had a terrific start, with two transactions signed in three months following closing. Our performance to date, coupled with a strong pipeline, evidence the team’s ability to identify quality opportunities and structure creative solutions even in a competitive market.

“Germany and Japan are two strong recovery stories, and the Deutsch-Japanische Center sits squarely astride them. The property will complement our portfolio and fits with our stated intention of identifying assets across Europe that offer the potential for superior risk-adjusted returns through active and innovative investment management.”

Trish Barrigan, Senior Partner at Benson Elliot, added: “We are delighted to have developed a new partnership with Event and look forward to working with them to further the value of the Deutsch-Japanische Center. The acquisition demonstrates our confidence in investing in the German hospitality and property markets, where we see clear evidence of improving fundamentals.”

Anders Braks, Managing Director of Event Holding, said: “We’ve been impressed with the professionalism, confidence and agility of the Benson Elliot team. We look forward to extending our cooperation with Benson Elliot with other acquisitions in the future.”

Benson Elliot was advised on the acquisition by CBRE Hotels. Financing for the acquisition was provided by Bank of America.