Fitch Affirms $500MM GGP Ala Moana, Series 1999-C1.

Business Editors

NEW YORK--(BUSINESS WIRE)--Dec. 28, 2000

GGP Ala Moana L.L.C. commercial mortgage-backed securities, series 1999-C1, $274.5 million class A and $37.5 million class B certificates are affirmed at `AAA' by Fitch. In addition, the following certificates are affirmed: $21.4 million class C at `AA', $78.5 million class D at `A', $54.2 million class E at `BBB', and $33.9 million class F at `BBB-'. The rating actions follow Fitch's annual review of the transaction, which closed in August of 1999. The certificates are privately placed pursuant to Rule 144A of the Securities Act of 1933.

The collateral of the mortgage debt is secured by a first priority mortgage lien on the issuer's fee and leasehold interests in five properties located in Honolulu, HI: a super-regional mall, Ala Moana Center (the center); two office buildings, Ala Moana Building and Ala Moana Pacific Center; a retail center, Ala Moana Plaza; and additional retail and office properties, the Kapiolani and CEC Properties. The weighted average occupancy as of June 2000 was 94%.

The center, the trophy asset of the collateral, is a 1.82 million square foot (sf) super-regional shopping center and the largest open-air mall in the United States. The four anchor tenants, which collectively comprise approximately 54% of the property, are Sears, Liberty House, JC Penney and Neiman Marcus. Comparable in- line sales performance and occupancy costs for the trailing twelve months ending June 2000 (TTM 6/00) were stable and strong. Recent renovations include the completion of the Phase V-A Expansion, which added 290,000 sf (including Neiman Marcus), and partial completion of a parking deck construction. The parking construction is expected to finish by April 2001.

The rating actions are based on the continued strong operating performance of the properties, primarily the center, partially due to the improvement in the Hawaiian economy and an increase in the influx of tourists from Asia. The stressed net cash flow (NCF, net operating income adjusted for tenant improvements, leasing commissions and capital reserves) for TTM 6/00 was $64.1 million, an increase of 5.1% from the Fitch underwritten NCF of $61.0 million. The corresponding stressed debt service coverage ratios, i.e., based on application of a 9.00% constant to the outstanding certificate balance, were as follows: 2.28 times (x) for classes A and B, 2.14x for class C, 1.73x for class D, 1.53x for class E, and 1.42x for class F.

Fitch will continue to monitor this transaction, as surveillance is ongoing.