29 September 2005 - Macquarie Global Property Advisors (MGPA), a private equity real estate fund management company, announced today that it has agreed to purchase two Tokyo properties that have a combined value of US$219 million on behalf of Macquarie Global Property Fund II (MGP Fund II).

MGP Fund II closed with equity commitments of approximately US$1.3 billion which, with financing, produces capacity to acquire approximately US$5billion worth of real estate investments over the next three years.

The two properties consist of a 32 storey residential tower development in central Tokyo and a 10 storey office building in east Tokyo.

This builds on MGPA’s portfolio in Tokyo as its Global Fund I also owns office buildings in Ueno and Toranomon - also in central Tokyo.

The residential tower is in close proximity to Ikebukuro station and once completed in early 2007 will consist of 403 residential units ranging in size from 40 sqm to 120 sqm with the average unit being 62 sqm. The Ikebukuro tower will have a gross area of 27,000 sqm. MGPA will provide development management services as well as manage a leasing programme to enable the property to be ultimately sold as an income producing investment which could be attractive to both REITs and institutional investors.

MGPA Asia Managing Director, Simon Treacy said, ”Demand for residential real estate in central Tokyo with close proximity to transportation is growing rapidly as the inner city lifestyle is becoming increasingly desirable and affordable.

“The Ikebukuro residential tower is extremely well located to capture this market demand being only three minutes from Ikebukuro station, one of three major transportation terminals in Tokyo.”

The 10 storey office building MGPA has purchased was built in 1989, has a gross area of 8,830 sqm and is located four minutes from Kameido station in Koto ward, Tokyo.

“MGPA will apply its proven active asset management and development skills to reposition this asset through a refurbishment and operating expense reduction programme,” said Mr Treacy.

“Our strategy of buy, fix and sell that we intend to implement for the Kameido office investment is consistent with the approach MGPA has used with several other assets in Japan over the past five years in which we have been very successful resulting in excellent returns for our investors,” said Mr Treacy.

“With Japan’s economy improving and the overall demand for office space in Tokyo picking up, the vacancy rate in central Tokyo has dropped significantly. Overall rents in Tokyo have bottomed out and rental growth is becoming more prevalent.

“Kameido is located in an area showing signs of recovery as good quality office space becomes scarce in the centre of the city and tenants look for more affordable rents in locations that have good access to central Tokyo,” said Mr Treacy.

“These initial investments for MGP Fund II are illustrations of the excellent opportunities available in one of our key Asian cities and indicative of the potential within the current Asian real estate markets.”