22 June 2010 - MGPA, the private equity real estate investment advisory company, is pleased to announce that it has exchanged contracts for the acquisition of Exchange Tower, Harbour Exchange, Docklands London E14, for £134.6 million from Hammerson plc. Completion is targeted for September.

The acquisition is on behalf of MGPA Europe Fund III (the “Fund”), part of the larger MGPA Global Fund III, which closed in June 2008 with commitments of US$5.2 billion to invest across Europe and Asia. Europe Fund III raised US$1.3 billion (€841.5 million) and has already made investments in the UK, France, Italy, Greece and Poland. Harbour Exchange is a nine acre landmark freehold estate built in 1989 incorporating a 482,950 sq ft office tower (known as Exchange Tower or 1 & 2 Harbour Exchange), 565 car spaces and the superior leasehold interest of the adjacent Harbour Island. It is well located to the south of the Canary Wharf Estate, adjacent to the South Quay DLR station and a short walk from Canary Wharf underground station.

The net yield is 8.1% off a contracted rent of £11.1 million and the weighted average lease expiry is 4 years. The property is let to 30 principal tenants at an average passing rent of £24 per sq ft with 49% secured by the UK government and Barclays plc. The buildings have flexible 15,000 sq ft floorplates which can be readily subdivided into three tenancies and most floors have panoramic views. The estate also has the potential for high density residential development in the future.

MGPA’s Head of UK Acquisitions, Hamish MacDonald said, “The UK is a key market for the Fund. Exchange Tower is the Fund’s second investment in the UK after Lands Improvement Holdings plc, the once-listed land development company that was acquired in December 2009. We are positive about rental growth prospects for the Central London office market due to the lack of supply available from the previous cycle and the constrained immediate development pipeline. In Exchange Tower, the Fund has acquired a good quality, multi-let office building at a capital value below reinstatement cost and in a highly supply constrained sub-market. The asset provides a range of office solutions (suites to multiple floors) offering best value for money to tenants seeking proximity to the Canary Wharf Estate. Our highly experienced asset management team will make the most of the opportunity to lease vacant space and restructure leases into the recovering Central London office market.”

MGPA was advised by Capital Real Estate Partners, Berwin Leighton Paisner LLP and PwC.

MGPA

MGPA is an independently managed private equity real estate investment advisory company focused on real estate investment in Europe and Asia. Through its network of offices throughout Europe and Asia, MGPA currently manages US$10.4 billion in assets throughout these two regions. Its managed investments include development and redevelopment projects, joint-ventures and real estate operating companies in the office, retail, industrial, residential and hotel sectors. MGPA is owned by its senior management team and the Macquarie Group, a diversified international provider of banking, financial, advisory and investment services, headquartered in Sydney, Australia. For more information about MGPA please visit www.mgpa.com.