24 November 2006 - Macquarie Global Property Advisors (MGPA), B.S.R. Europe Ltd (B.S.R.) and Star Enterprise have formed a joint venture to develop over 2,500 premium quality residential units in the Wilanów district of southern Warsaw.

The overall project cost is expected to be approximately €240 million. The project will be developed under the name “Wilanów One”.

MGPA’s participation is being made on behalf of MGP Fund II which closed in September last year with equity commitments of US$1.3 billion. The Fund will hold a 70% interest in the venture. MGP Fund II has already made a major investment in Poland this year, having entered into a 50/50 joint venture with London and Regional Properties Limited for the ownership of Rondo 1, a prime office building in Warsaw.

The project, which will be developed as a gated community in Wilanów, will consist of developing, building and selling over 2,500 premium quality residential units. A total of approximately 32 buildings are planned to be built over six phases. Wilanów One will include community retail and leisure facilities including a health and fitness club and swimming pool and will offer a range of different sized apartments. There will be a unique offer of three options for complete internal fit-out to purchasers of the apartments. The apartments will also offer air conditioning systems as standard – a feature not offered by competing developments in the market.

Marketing of the units in the project has already commenced and construction is expected to begin in January 2007.

MGPA Managing Director Alex Jeffrey said: ”This project takes advantage of the the strong demand for good quality, well located residential accommodation in the city as well as the favourable demographic trends. This will be one of the very best developments on the market and will be very appealing to local buyers.

“This investment is consistent with MGPA’s strategy of extracting full value from its investments through active development and asset management. We are very pleased to be partnering on this investment with B.S.R. and Star Enterprise, two companies with a strong specialist track record of residential development in Poland.”

Kalman Sufrin, Chairman of B.S.R. Europe, said: “This is a top quality residential project in a great location. We intend to build on our valuable experience gained on the successful Osiedle Europejskie project in Krakow which has proven extremely popular with buyers (1,400 units have been sold out of 2,400 units planned) and led to us being nominated Developer of the Year in Krakow for 2004. We are delighted to have MGPA as our partner on this investment as they share our vision for the future of the residential market in Warsaw.”

Shachar Samuel, Chairman of Star Enterprise, said: “Our goal is to duplicate the success of our other projects in Poland like Angel Plaza and Angel City in Wilanów One. Willanów One is a unique concept of living which gives the clients the best value for money they can find in Warsaw market.”

Mr Jeffrey added: “We are particularly positive about the property market in Central Europe and are continuing to see attractive acquisition opportunities in a diverse range of locations and real estate sectors and anticipate making further announcements about acquisitions in the near future.”