PRESS RELEASES

Hines Expands Development Vision in Southern California with New Orange County Development Office

Orange County Native, Doug Holte, Will Launch Orange County Development Office for Privately Held International Real Estate Firm; 18-Year Hines Veteran Will Continue Firm's Worldwide Reputation as a Developer, Owner and Operator.

10/19/2005

(IRVINE, CA) – From Milan to Minneapolis, Hines, the international real estate firm, has developed a reputation for identifying and expanding into regional markets that provide long-term returns and development opportunities. The latest of these expansion plans includes opening a new permanent development office in Orange County.

Doug Holte, one of Hines’ four western regional partners and Orange County native, will lead the firm’s new Orange County office, overseeing development projects throughout Southern California, including the newest Hines development planned for 2211 Michelson in Irvine.

“When we open an investment and development office, we don’t open it to do one project. We go into locations that are going to be 20, 30 and 40-year markets for us. There is no reason why Hines can not grow in size and stature in Orange County as we did in Seattle, San Francisco and Los Angeles,” said Jeffrey C. Hines, president of Hines.

Hines recently purchased a 1.2-acre land parcel in Irvine, CA, in a joint venture with Crescent Real Estate Equities Company (NYSE: CEI). Together, the joint venture will develop a proposed 12- story, 260,000-square-foot, Class A office building located in the John Wayne Airport submarket.

“Hines is not a newcomer to the California real estate market. We have had a leading presence in California for over two decades. However, we feel the time is perfect for us to enter the Orange County development arena.  Orange County has matured into a true 24-hour, stand-alone marketplace, ready for national quality architecture and development,” said Holte.

Founded in 1957 by Chairman Gerald D. Hines, the privately held, international real estate firm typically establishes a local development office as a prelude to long-term investment activity that includes not only significant acquisitions, but also architecturally distinct developments that often change the skylines of cities in which they are built. As a result of this growth strategy, Hines has established itself as an international leader in commercial real estate with more than

Hines Expands Into Orange County

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2,900 employees and major offices in 63 U.S. cities and 13 foreign countries. The Hines portfolio of projects completed and underway consists of more than 800 properties including stunning skyscrapers, premier corporate headquarters, mixed-used centers, industrial parks, medical facilities and master-planned resort and residential communities. Currently, Hines has over 90 million square feet under management and controls assets valued in excess of $11 billion.

“We want to become a major player in Southern California as a principal, and owner/operator. Hines makes a major investment in the markets we enter, and this 12-story office tower investment is the basis for this growth story. The Orange County market is not new to us, but we feel the time is right for us to enter this market in a big way. Because we are involved in every phase of real estate investment – development, acquisition, property and asset management – (make this an emdash instead of two small dashes) we have a great deal of influence in every market we enter.  With our new Orange County office, we will be able to better source and identify opportunities and respond to the communities in which we do business,” said Holte.

“When we open an office, we establish it with tenured partners – people who know our culture and how we operate. It’s the real key our long-term success. We have an exceptionally high-quality group of people who have made their careers at Hines. We like to complement our worldwide reach with local impact, so it’s very important to have people who have grown up with the firm, who know how we treat investors and tenants, the way we execute our transactions with the utmost integrity, and handle everything we do in a quality manner. Our culture is very important,” said Hines.

Holte has extensive experience overseeing large, complex development projects, including the 538,000-square-foot Lantana Media/Entertainment campus in Santa Monica, the San Diego Padres Ballpark and the Gateway Office/Lab Campus in the Bay Area. In addition, Holte was responsible for managing the acquisition and renovation efforts for 15 office buildings totaling five million square feet in Westside Los Angeles, San Diego County and the San Francisco Bay Area. Since joining Hines in 1987, Holte has contributed to the development, redevelopment or disposition of more than 10 million square feet of commercial real estate valued in excess of $2 billion.

Holte is a former Board Chair for the Westside Urban Forum, current Board Chair for Covenant House of California as well as current member of USC’s Advisory Board to Center for Sustainable Cities and former Board Member of USC Architectural Guild.

About Hines:

Hines is a privately owned real estate firm involved in real estate investment, development and property management worldwide. The Hines portfolio of projects completed, underway, acquired and managed for third parties includes more than 800 properties representing over 285 million square feet of office, mixed-use, industrial, hotel, medical, sports facilities and residential properties, as well as large, master-planned communities and land developments. Hines entered the California market in 1979 with the development of downtown San Francisco’s 101 California. Its West Region includes 17 million square feet valued at $5 billion. With offices in 63 U.S. cities and 13 foreign countries, and controlled assets valued at approximately $11 billion, Hines is one of the largest real estate organizations in the world. Access www.hines.com for more information.