Prudential Takes 20% Stake in the Big Yellow Self Storage.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Oct. 13, 1999--

Company's Third UK Real Estate Investment In Last 12 Months

The Prudential Insurance Company of America, working through its London-based real estate investment management arm PRICOA Property Private Equity Limited (PPPE), announced it has taken an initial 20% stake in The Big Yellow Self Storage. The Big Yellow is a provider of self storage centers in Europe. The $18 million cash investment gives The Big Yellow the ability to expand its operation in a fast growing industry in the United Kingdom. While self storage is largely a mature industry in the United States, this sector is still in its infancy in the United Kingdom with less than 300 centers operational, compared with 27,000 in the U.S. "This strategic investment in The Big Yellow meets all of our key investment criteria for investing in European real estate operating companies, including strong management, proven brand and operational expertise, and clear potential to become a market leader in a growth sector," said Richard Mully, managing director of PPPE. "We're convinced there are enormous growth opportunities for this niche sector throughout the UK and continental Europe."

The United Kingdom self storage market has grown approximately 15% per year during the past decade. The Big Yellow plans to have ten self storage centers in London and its surrounding area by the end of the year. It is targeting longer term expansion into other parts of the United Kingdom, as well as Europe, which has an even less developed market than the UK. The Big Yellow is Prudential's third such transaction in the United Kingdom in 12 months and comes on the heels of its acquisition of Hemingway Properties PLC for $190 million last month, representing the company's first UK public to private acquisition. Listed on the London Stock Exchange, the Hemingway group owns a $460 asset portfolio in the office, retail and industrial sectors of the United Kingdom. In October 1998, Prudential led a consortium that purchased Arlington Securities, Plc, the UK's leading business parks developer. PPPE is part of Prudential Real Estate Investors (PREI), Prudential's global real estate money management firm that offers clients investment opportunities in Europe, Asia and the United States. It manages $12 billion in assets on behalf of 300 institutional clients. PREI is a unit of Prudential, the largest life insurance company in the United States and one of the largest diversified financial institutions in the world with $375 billion in total assets managed and administered at year-end 1998. Prudential has a global presence in 30 countries, providing a variety of products and services in the areas of insurance, investments, securities, and real estate to more than 30 million customers.