Lend Lease Forms European Real Estate Securities Management Firm -Lend Lease Houlihan Rovers-.

Business Editors

LONDON--(BUSINESS WIRE)--February 22, 2000

Lend Lease Real Estate Investments, one of the world's leading property investment management companies, announced today the formation of a joint venture to manage European real estate securities for institutional investors, high net worth individuals and retail investors. The new Brussels-based company, called Lend Lease Houlihan Rovers, is a partnership between Lend Lease and two well-known real estate securities managers, W. Joseph Houlihan and Gerios Rovers. Houlihan and Rovers were previously at Security Capital in Europe.

Lend Lease Houlihan Rovers will complement Lend Lease's existing United States and Australia-based real estate and mortgage securities management businesses. In the United States, Lend Lease Rosen Real Estate Securities manages more than US$890 million in REIT stocks and other property securities, while Lend Lease Hyperion Capital Advisors manages US$759 million in commercial mortgage backed securities. In Australia, Lend Lease manages US$1.2 billion in real estate securities.

Daniel Rashin, Chief Executive Officer for Lend Lease Real Estate Investments, Europe, says: "The rapid growth of real estate in publicly-traded companies will accelerate across Europe, and demand for these stocks among both US and European investors will increase significantly. In Europe, Lend Lease Houlihan Rovers will be an excellent complement to our established Lend Lease private equity real estate funds business, including the Lend Lease Retail Partnership, the largest UK property partnership which invests in Bluewater, Europe's largest retail and leisure destination, and will also invest in at least one other major shopping centre," he said

Susan Lloyd Hurwitz, President of Lend Lease Rosen says: "Lend Lease's new European real estate securities investment management arm will further the company's goal of providing investors from around the world with a full range of international real estate products and services, meeting their investment requirements."

Worldwide, Lend Lease Real Estate Investments operates on five continents with US$40 billion under management. The company invests in the equity/debt public and private real estate markets for hundreds of pension funds, insurance companies, other institutional investors, and high net worth individuals. The company has large portfolios of office buildings, shopping centers, warehouses, hotels and apartments.

"Lend Lease is an ideal partner," says Houlihan. "This company has tremendous global presence, it's research driven, and client focused with a substantial platform to support our securities investment activities."

Houlihan has over 20 years of real estate investment experience, most recently serving as a managing director of Security Capital Global Capital Management Group (Europe) where he was responsible for research and portfolio management and was a member of the management committee. Previously, he was an executive vice president at GIM Algemeen Vermogensbeheer, a Dutch investment management company, specializing in global real estate securities investments.

Rovers served as a Security Capital GCMG-Europe Vice President, responsible for development and implementation of portfolio strategies. Previously, he also worked for GIM Algemeen Vermogensbeheer where he managed global real estate securities. He has more than 10 years of experience.

Lend Lease Real Estate Investments is one of the largest real estate investment managers in the world and a leading U.S. real estate advisor to pension funds. On a worldwide basis the Lend Lease Group operates on six continents with US$40 billion in real estate under management and total funds under management and administration of US$60.6 billion. In addition to real estate investments, the Lend Lease Group operates in the areas of property development, project management and construction, and financial services. Financial services activities include funds management and administration, life insurance, and wealth protection. Lend Lease Corporation's market capitalization is approximately US$7 billion.