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London & Capital acquires German retail assets for EUR 225m
Date published: 5 November 2007

London & Capital said Monday that it has acquired a portfolio of 38 retail properties in Germany worth EUR 225m for its German Real Estate Fund in the largest transaction in the company's history. The fund now has assets valued in excess of EUR 650 mln.

The new and high-quality retail assets are a -balanced combination of supermarkets, shopping centres, out-of-town retail parks and local convenience schemes' spread throughout the former West Germany, the international investment company said in a press release. 'The geographical spread complements the current fund as there is a low correlation to the existing total weighting'. The ongoing sector diversification enhanced the fund's risk spread, London & Capital said. The average lot size was EUR 5.9 mln.

Ralph Weichelt, country fund manager at London & Capital said: 'This is a momentous win for London & Capital that drives assets in the Fund up by 50%. The acquisition of thirty-eight assets within this one portfolio will further strengthen the Fund both in terms of risk and asset class exposure. We are looking at a projected gross contractual rental income of EUR14.6 million per annum with plenty of capital growth opportunities.'

Iain Keys, director of real estate at London & Capital, added: 'We are seriously committed to the opportunities in German commercial real estate and will continue to source first-class covenants with high-quality tenants. This acquisition will contribute to the strong performance of the German Real Estate Fund to date, generating strong returns from mid and long term rental growth prospects.'

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Meag enters Swedish market with EUR 220 mln deal
Date published: 8 November 2007

Munich Ergo Asset Management (Meag) has acquired the Plaza 63 office project in Stockholm for around EUR 220 mln from development consortium Stockholm Klara. The office building will offer around 25,000 m2 of floor space and 125 underground parking spaces and is due for completion at end-2009.

The acquisition marks Meag's first foray into the Swedish market. Commenting on the deal, Meag's global head of real estate Knut Riesmeier said: 'This project fits in perfectly with our investment focus on commercial properties in prime locations in major European cities.'

Plaza 63 is located in the heart of Stockholm's central business district, close to the main railway station and the Stockholm World Trade Center. It forms part of a bigger development called Stockholm Klara which includes a new 418-bed hotel and a congress centre for up to 3,000 people.

The Stockholm Klara development consortium is led by Jarl Asset Management and includes Niam Fond III and Car Val Investors. Meag was advised by Cushman & Wakefield during the transaction.

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GE RE expands in Italy
Date published: 7 November 2007

GE Real Estate has increased its exposure to the Italian property market with the acquisition of 70% of the closed-end commercial real estate fund Redwood. GE RE will join Valore Reale as co-asset management advisor. Valore Reale has 16 funds with total assets of EUR 900 mln under management.

Redwood's portfolio comprises 22 retail properties worth about EUR 130 mln, most of which are let to Grupo Dixon's Unieuro. This acquisition follows GE RE's purchase in 2006 of the Belvedere Auchan di Mellili shopping centre in Syracuse and the Primavera shopping centre in Rome. Lehman Brothers has also invested in the new fund, according to the news agency Radiocor.

Olivier Teran, head of business development of GE RE Europe and managing director of GE RE Italy, said: 'These two acquisitions underline our growth strategy in the country. The retail sector is a key part of our expansion strategy in the country, as it offers excellent growth opportunities in a fragmented market such as the Italian one. We are already looking for other opportunities in this sector.'

Additionally, GE Real Estate, through its Petrarca fund, has bought the Centro Gorki office complex from Deutsche Bank's Rreef Fondi Immobiliari for EUR 43 mln. The office covers some 35,000 m2 of space at Cinisello Balsamo, north of Milan, and is leased out to the joint venture Siemens-Nokia. The Gorki building is the first acquisition of Petrarca, which is managed by Italy's Aedes. The Petrarca fund has a EUR 250 mln initial portfolio including 10 real estate assets across major Italian cities.

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AMB Property acquires development site in Paris
Date published: 7 November 2007

San Francisco-based AMB Property Corporation has purchased a 520,000 m2 site in Paris, which when fully developed could support over 212,000 m2 of distribution space. The new development, which will be called AMB St Pathus Logistics Park, is located north of Charles de Gaulle International Airport. According to the company, the multi-phase plan for AMB St Pathus Logistics Park will accommodate speculative, build-to-suit and build-to-sell development.

Guy Jaquier, AMB's president, Europe & Asia, said: 'Our European development program gained noticeable traction this year, with a number of key construction starts, completions and stabilised asset contributions to the Europe. This acquisition adds to our land bank and gives increased visibility to our ongoing development program over the next couple of years.'

Mo Barzegar, AMB's managing director, Europe, added, 'With its large floor plate design efficiencies and easy access to Paris, AMB St. Pathus Logistics Park will complement our existing portfolio of airport facilities. Land of this size is at a premium in Ile-de-France, providing AMB with a competitive advantage in this region.'

In a separate statement, the company's Dutch affiliate, AMB Property BV, announced that it is nearing completion of its 9,000 m2 development project in Lijnden, near Amsterdam's Schiphol Airport. The new facility, named AMB Lijnden Logistics Court 1, represents a diversification of AMB's offering of logistics space in Amsterdam as it will provide smaller multi-tenant units. The facility, which is being developed with Keystone Vastgoed, is comprised of two buildings and consists of four units, each totaling approximately 2,000 m2 of warehouse space and 450 m2 of office space.

'Since our entry in the Amsterdam market in 2003, we have offered larger units, but we have discovered the demand for smaller functional distribution space,' said Barzegar, AMB’s managing director, Europe. 'We look to further strengthen our position in the Amsterdam market by diversifying the offering of Class-A distribution space to our customers.'

AMB's portfolio in Europe totalled more than 904,500 m2 of operating and development properties as of 30 September 2007.

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Jelmoli acquires majority stake in Seiler Hotels Zermatt
Date published: 6 November 2007

Jelmoli Holding, one of Switzerland's leading retail and real estate companies, has acquired 39% of Seiler Hotels' share capital, bringing its total share ownership in the luxury hotel chain to 80%. Jelmoli, listed on the Swiss stock exchange SWX, acquired a 36% stake in 2005 and a further 5% in 2006.

Seiler Hotels Jermatt has owned luxury hotels in the centre of the Zermatt, a village near the Italian border drawing thousands of tourists each year, for the past 150 years. Jelmoli plans to continue the Seiler family’s historically sustainable development of this portfolio. Seiler, with Roberto Seiler as chairman of the board of directors, will still play an active role in the company’s activities. Current development projects continue as planned.

The news follows the recent collapse of Jelmoli’s EUR 2 bn property sale to Delek Global, who said that the portfolio’s adjusted price did not ‘adequately reflect the change and continuing uncertainty in the global commercial property market’. The company also said that with the deal falling through, it is considering an initial public offering for its real estate portfolio.

Jelmoli had in July announced the sale of its Swiss real estate portfolio to the consortium, which comprised Igal Ahouvis Blenheim Properties Group, Delek Global Real Estate and its parent Delek Belron International.