Dresdner Bank Agrees to $2.4 Billion Sale Leaseback of Property Portfolio

Eurocastle Web Site - December 22, 2005

Eurocastle Investment Limited (Euronext Amsterdam: ECT),which is managed by Fortress Investment Group LLC, today announced that it has signed a definitive agreement with Dresdner Bank AG to acquire 100% of an open-end fund which owns a portfolio of 303 commercial properties for approximately €2 billion. The properties consist primarily of office buildings and are largely occupied by Dresdner. The bank will continue to occupy their current space which represents approximately 80% of rental income on the portfolio. Dresdner’s average remaining lease term is 9 years, while the average
remaining lease term of the entire portfolio is approximately 8 years. Approximately 15% of the portfolio is currently vacant.

The properties, totaling approximately 9 million square feet (845,516 square meters) of leasable space, are located throughout Germany, with concentrations in Frankfurt, Hamburg, Munich, Düsseldorf and Berlin. The assets are generally in major metropolitan areas and Eurocastle believes that the properties are among the best-located and highest quality assets in their respective markets. The purchase reflects an unleveraged initial yield of approximately 5%.

(Seperate media sources reported that Australia's Babcock and Brown and investment bank Morgan Stanley with its German partner DIC were also shortlisted in the bidding for the 300 property portfolio.) Sphere: Related Content