Resolution Property plc - Offices Development - Blackstone Group and JER Partners back £250M Office Programme

Date: 11 May 2001

Resolution Property plc today announces the formation of three single-asset limited partnerships backed by US real estate investors The Blackstone Group and JER Partners to finance more than £250 million of office development and investment in Greater London.

Blackstone and JER Partners have committed more than £70 million to the limited partnerships, equating to 85% of the equity, which will fund office schemes in Hayes, Hammersmith and Camden respectively. Resolution have committed the remaining 15% of equity and will act as managing partner.

Eurohypo AG and Deutsche Bank AG have agreed to provide senior and mezzanine facilities of up to £165 million to support the three schemes.

Robert Laurence, Chief Executive of Resolution, said:

"We are delighted that Blackstone and JER Partners, two very highly regarded US investors, have agreed to back Resolution's office development and investment programme."

The limited partnerships and their assets will be:

Hayes Limited Partnership: Resolution has acquired and secured planning consent for an office scheme that will rejuvenate the former EM gramophone record factory and stores in Hayes, near Heathrow. originally designed by architect Wall is Gilbert, these multi-storey art deco buildings will be refurbished to provide 554,400 sq ft of ultra-modern airconditioned offices. Designs are due to be unveiled later this year and work is scheduled to start on site in May 2001.
Camden Limited Partnership: Resolution has restored Greater London House, an impressive Art Deco building in Camden, to provide 340,000 sq ft of office space on six floors. Tenants include Young & Rubicam, EMAP and Thomson.

Hammersmith Limited Partnership: Resolution is close to completing the refurbish ment of Hammersmith Grove, comp rising more than 115,000 sq ft of offices. Pre-lets have been agreed with MWB Business Exchange and Panasonic Disc Services International Limited at rents of up to £35 a sq ft. Agents FPD Savills and Keningtons expect future lettings to achieve significantly higher levels.

An inter-connecting building of 100,000 sq ft is fully let to various tenants on short term leases.

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