Benson Elliot fund reaches €500 million in four months with €240 million French portfolio acquisition

Joint venture with Générale Continentale Investissements
takes control of six buildings in and around Paris

12 February 2007 — Benson Elliot Capital Management, the private equity real estate firm launched by Marc Mogull (“Benson Elliot”), and Générale Continentale Investissements, a leading French real estate investment and development company (“GCI”), announced today the acquisition, in joint venture, of six Paris-area office properties. Total consideration for the transaction was approximately €240 million, with Benson Elliot investing on behalf of its fund, Benson Elliot Real Estate Partners II (the “Fund”).

The 38,000 square metre portfolio includes the famed Opera Italiens building in Paris’ 9th Arrondissement, formerly headquarters of French daily Le Monde and today home to France’s Ministere de la Justice. Other properties in the portfolio are situated in the 8th , 13th and 16th Arrondissements. The portfolio also includes two office buildings in the popular western suburb of Issy Les Moulineaux. Major tenants in the portfolio include Editis, Lafarge and Pages Jaunes.

The Paris acquisition is the third by Benson Elliot Real Estate Fund II since it began its investment programme in the fourth quarter of last year, and takes the Fund’s portfolio to c. €500 million. It follows the Fund’s investment in Denmark alongside leading Danish developer Sjælsø Gruppen, and last week’s acquisition of the Deutsch-Japanische Center in Düsseldorf, in joint venture with Germany’s Event Holding.

Marc Mogull, Managing Partner of Benson Elliot, said: “In less than four months we’ve built a portfolio of almost half a billion euros, across three countries, investing around 25% of the Fund. We’ve worked hard to assemble a great team at Benson Elliot, and the results of the last few months evidence our success. We’ve also established ventures with three great partners, and look forward to building on these relationships in the coming months.”

The joint venture with GCI reunites Benson Elliot Senior Partner Trish Barrigan with her former French partners. Ms. Barrigan, who in the 1990’s worked in Paris as part of Goldman Sach’s Whitehall Funds team, led the acquisition and development of c. 100.000 square metres of offices in France with GCI.

Paul Raingold, President of GCI, said: “We’re delighted to develop a new partnership with Benson Elliot and to work again with Trish and her team on this portfolio. We’ve acquired some great assets and see numerous opportunities to add value.”

“The acquisition demonstrates our confidence in the French property market,” said Ms. Barrigan. “The market is strong, with healthy supply and demand factors underpinning the outlook. Particularly in and around Paris demand for high quality office space has reduced vacancy over the last few years, and we expect rental growth to be the result.”

“Having worked successfully with GCI in the past, I’m pleased to be continuing that relationship with Benson Elliot. Our organisations share a positive outlook on the French market in general and the Parisian office market in particular.”

Sharon Raingold, Managing Director of GCI, said: “The venture with Benson Elliot means that we have an equity partner who understands our strengths and is willing to help us grow our portfolio of assets under management.”

Financing for the deal was arranged by Morgan Stanley Bank International.