Westbrook Real Estate Partners, L.L.C. Announces Future Investment Plans.

Business Editors

NEW YORK--(BUSINESS WIRE)--June 26, 2003

Westbrook Real Estate Partners, L.L.C. ("WREP") announced today that it will raise additional funds for future investment activities through two independent vehicles. However, the management and operation of WREP's four existing funds (Westbrook Real Estate Funds I-IV), with capital commitments of approximately $4 billion, will not change.

Funds I-IV will continue to be managed by the six Managing Members Paul Kazilionis, Bill Walton, Greg Hartman, Jonathan Paul, Keith Gelb, and Pat Fox, and will operate under the "Westbrook Partners" name. The Managing Members are committed to working cooperatively on the successful management and harvesting of the existing asset base. The management of Funds I-IV, including asset, risk and liability management, legal diligence, investor relations, accounting and financial reporting will remain unchanged. Scott Fitzgerald, Director of Asset Management, will work on a full time basis on the investments in Funds I-IV for a minimum of 18 months and will devote a substantial portion of his time to Funds I-IV thereafter. The international asset management team will also remain in place. In addition, the major operating platforms owned and controlled by Funds I-IV, including the land development subsidiary, Terrabrook, and Sunstone Hotel Investors, will remain in place to manage their existing assets. Finally, Rachel Brannan, Chief Financial Officer, will continue to oversee the finance and accounting functions of Funds I-IV. The interests of the Managing Members of WREP remain closely aligned with the investors through their significant financial investments, as well as their personal and professional commitments.

Bill Walton said, "We have performed a thoughtful review of our business and the investment environment and believe smaller, more nimble investment companies will be more effective going forward. However, we remain firmly committed as a team to our current investment portfolio and are determined to maximize the value of our holdings for our limited partners over the coming years." Paul Kazilionis added, "We are proud of what we, as a team, have accomplished over the last nine years and believe that we have delivered superior risk-adjusted returns. The decision to form independent investment vehicles is amicable and reflects differences in how we want to approach investments going forward."

With regard to the new entities, Managing Member Paul Kazilionis, Managing Principals Jeffrey Kaplan, Mary Hull and Rachel Brannan and Principal Joe Russo and several other Westbrook professionals will form a new entity that will operate under the "Westbrook Partners" name. Managing Members Bill Walton, Greg Hartman, Jonathan Paul, Keith Gelb, Pat Fox and several other Westbrook professionals will form a second entity, which will operate under a new name. Scott Fitzgerald has agreed to join this second entity and continue his asset management responsibilities for Funds I-IV. The new investment vehicles are expected to begin investment activity later this year after Fund IV is fully invested.

Westbrook Partners, L.L.C., founded in April 1994, is a fully integrated real estate investment management company with offices in Boston, Dallas, Florida, New York, San Francisco, London and Singapore. Westbrook is the sponsor and general partner of four commingled real estate investment funds with capital commitments of approximately $4 billion. The funds are capitalized by a diverse group of primarily U.S. institutional investors including public and corporate pension funds, endowments and foundations, and financial institutions. Westbrook targets investments in a broad range of real estate-related assets, portfolios and companies. Westbrook maintains complete discretion with respect to all investment and asset management decisions.