Construction Loan Secured for Lincoln Square Development; Residential, Retail, Hotel, Office and Parking Complex Under Construction.

Business Editors

NOTE TO MEDIA: Photo is available in a Smart News Release(TM) on

Business Wire's Home Page at www.businesswire.com and at

www.newstream.com

BELLEVUE, Wash.--(BUSINESS WIRE)--May 15, 2001

Developers of the Lincoln Square mixed-use complex under way in downtown Bellevue have secured a $255 million construction loan syndicated by Fleet National Bank and Dresdner Bank AG.

Announcement of the construction loan, one of the largest placed in the United States so far this year, was made today by Lend Lease Real Estate Investments, Inc. Lend Lease's Value Enhancement Fund IV, a commingled investment fund for institutional investor clients, is the majority owner of Lincoln Square and Lend Lease is co-developer.

Andrew Friedman, a principal with Lend Lease and head of the company's west region, called the loan a "major vote of confidence in Lincoln Square in a cautious banking market." Plans for the $360 million Lincoln Square project consist of a 27-story, 530,000-square-foot office building and a 42-floor tower consisting of 148 luxury condominiums above a 303-room Westin Hotel. Both towers sit above 330,000-square-feet of specialty retail including restaurants, a 12-screen movie theater and 60,000-square-foot health club. A 2,142-space underground parking garage services the entire project. The complex is under construction opposite Bellevue Square, one of the most successful regional shopping malls in the nation.

Lincoln Square is being developed jointly by Lend Lease Real Estate Investments, Inc. and Westbank Investments (USA) Inc. of Vancouver, British Columbia. Lend Lease's Value Enhancement Fund IV is primary investor in the retail, office and residential components. Westbank and Starwood Hotels & Resorts are primary owners of the hotel.

"We appreciate the opportunity to continue our partnership with Lend Lease, having provided construction financing for several of its other major projects, including a 33-story, 600,000-square-foot office building in Boston's prestigious financial district and UBS Tower, a 50-story Class A office tower due to open this year in downtown Chicago," said Margaret A. Mulcahy, director, Fleet National Bank. "The plans for Lincoln Square will bring an exciting new dimension to an area of Bellevue that is enjoying tremendous vitality, and Fleet is very pleased to be a part of making that happen."

Johannes Boeckmann, managing director of Dresdner Bank Real Estate, said "Dresdner is pleased to be expanding its relationship with Lend Lease through the Lincoln Square project. We believe that Lincoln Square, with its exciting mix of office, retail and residential will evolve into the heart of downtown Bellevue." For Dresdner Bank, which has financed other development projects in Bellevue, this is a continuation of their focus on large, complex, and high profile development projects across the country.

Other participants in the project include Kennedy Associates Real Estate Counsel, a Seattle-based pension advisory firm and advisor to Riggs Bank N.A. for the Multi Employer Property Trust--a $2.8 billion pooled equity real estate investment fund that will invest $51 million in a takeout loan for the Westin hotel component of the project.

Ian Gillespie, principal with Westbank, said, "We are extremely excited to have Fleet and Dresdner as financial partners in the project. With the construction loan now secured we are moving full speed ahead with the project and expect it to be a success for all parties. Lincoln Square has everything going for it; prime location, strong capital partners and the right timing."

Construction of Lincoln Square began last summer under the leadership of Westbank principal Ian Gillespie. Westbank has $450 million in development under way in the Canadian provinces of British Columbia and Alberta. There is a redevelopment of a major shopping center in addition to two new shopping centers under development and design and one high-rise tower located in downtown Vancouver along the waterfront consisting of mixed-use retail, office and luxury residential condominiums. Two residential projects, one urban and one suburban, are both currently under construction in the Vancouver, B.C. area.

Local members of the Lincoln Square development team include: project direction -- John Harris, Lend Lease; construction management -- CM & D; office leasing -- Colliers International; retail leasing -- Madison Marquette and Blatteis Realty Co.; residential sales -- Miller Torgerson & Associates; and architects -- Mithun Partners, James Cheng Associates and Callison.

Value Enhancement Fund IV (VEF IV) is the fourth in a series of closed-end, enhanced return real estate investment funds designed to take advantage of inefficiencies at varying stages in the real estate cycle. Since the inception of VEF I in 1993, the series of funds has found value in nearly $2.5 billion in commercial real estate throughout the United States.

The Value Enhancement Fund Series is managed by Lend Lease Real Estate Investments, one of the largest real estate investment managers in the world and a leading U.S. real estate advisor to pension funds. The company has $35 billion in real estate and commercial mortgages under management. The company's real estate portfolio totals over $500 million in equity assets under management in the Pacific Northwest and include a joint venture interest in U.S. Bank Centre in Seattle, Pebble Cove Apartments in Renton, Washington; a joint venture interest in Metropolitan Tower, a luxury apartment tower currently under construction in Seattle; a seven-million-square-foot industrial portfolio in the Pacific Northwest region and Salishan Lodge, a luxury resort located in Gleneden Beach, Oregon.

The company is a subsidiary of Lend Lease Corporation (ASX:LLC), a global, integrated real estate management and services business comprising funds management, project management and construction, and property development. Lend Lease has extensive experience in developing large-scale, complex projects. Recent development successes include the Ritz Carlton, Half Moon Bay in Half Moon Bay, California; Bluewater, County Kent, London, Europe's largest retail and leisure destination; the Olympic Village for the 2000 Sydney Games; and Darling Park and Cockle Bay Wharf, a mixed-used development on the edge of Sydney's central business district which includes two high-rise office towers and adjoining retail complex.

For additional information visit Lend Lease Real Estate Investments at www.lendleaserei.com or visit the project Web site at www.lincoln-square.com.

Note: A Photo is available at URL: http://www.businesswire.com/cgi-bin/photo.cgi?pw.051501/bb15