Carlyle Europe Real Estate Partners and GECINA Announce the Signing of a Sale Option of a New Office Building in Paris 20th

Luxembourg - Carlyle Europe Real Estate Partners and GECINA today announce that they have signed a sale option of Valmy, a newly developed office building in Montreuil close to Paris 20th, an investment higher than 130 millions euros. The transaction is expected to close within the next four weeks.

Carlyle Europe Real Estate Partners agreed to acquire the property in April 2004 while it was still under construction as a turnkey development. The property is a 7-floor office building consisting of 29,500 sq.m. It is located close to the peripherique ring road in Montreuil, east of Paris. The construction was developed by Meunier, a division of BNP Paribas Immobilier. The acquisition was completed at the time of delivery of the building in February 2006. The building is currently 25% leased to a state-owned company with a 12 year lease.

Carlyle Europe Real Estate Partners invested in Valmy through its first European real estate fund, Carlyle Europe Real Estate Partners I, a €430 million fund. The second fund, Carlyle Europe Real Estate Partners II, a €760 million fund, is now being invested.

Other sales completed by Carlyle Europe Real Estate Partners include five other office buildings in Paris, an office building in Milan, a portfolio of seven retail centres in Germany, 217 properties from the Poseidon portfolio in Italy, 22 properties from the Jupiter portfolio in Italy, and two from the Venus portfolio in Italy.

Following on from the investments seen at the end of 2005, and in line with its strategy, GECINA has further strengthened its office business. Indeed, over the last quarter of 2005, a number of major investments – representing a total of 880 million euros – were carried out: 88,000 sq.m in four Club Méditerranée holiday villages, 40,000 sq.m of office space in Levallois-Perret and Neuilly-sur-seine, 122,900 sq.m of logistics platforms in the Greater Paris Region, and lastly, the development of 40,000 sq.m of offices in La Défense and Boulogne-Billancourt.

Joaquin Rivero, Chairman and Chief Executive Officer of GECINA declared: "We are delighted with this new operation, which is being carried out for a building of very high quality and located in a very good and growing location in this area of Paris. This new acquisition will be a strong contribution to the growth of GECINA’s portfolio."

Carlyle Europe Real Estate Partners was advised by the notary's office Thierry Vachon, and Gecina was advised by the notary's office Jean-Maurice Oudot and ATIS REAL for the investment advice.