Fleet, Wells Lead Financing for 33 Arch Street in Boston.

Business Editors

BOSTON--(BUSINESS WIRE)--June 5, 2001

FleetBoston Financial's Real Estate Finance Group, as agent, along with the Wells Fargo Real Estate Group, announced today that they co-arranged a four-year, $150 million construction financing for the development of 33 Arch

PNC Bank and Sovereign Bank also participated in the loan.

The 33 Arch Street building is a joint investment of Congress Group Ventures, National Electrical Benefit Fund (NEBF) and Value Enhancement Fund IV. Value Enhancement Fund IV, a pooled investment account for pension funds, is advised by Lend Lease Real Estate Investments, Inc.

"The closing of this construction loan in the current capital market environment is a testament to the strong sponsorship of the 33 Arch Street project and was the result of a focused team effort between all those involved," said Dean Stratouly, president of Congress Group Ventures.

The tower will provide panoramic views of the Charles River and Boston Common and will greatly enhance the Downtown Crossing area of the city. Construction of the office tower is expected to begin in June 2001, with anticipated occupancy in the third quarter of 2003.

"As the largest commercial real estate lender in the Boston market, Fleet is very excited to lead the financing of this major downtown project," said Kenneth J. Witkin, managing director of Fleet's Real Estate Finance Group. "Congress Group Ventures is to be commended for bringing this significant addition to the downtown Boston skyline. The high caliber of this development team, from Congress Group Ventures to Lend Lease, Eastern Development and NEBF assures us that this project will be a great success and will bring some much needed Class A office space to Downtown Crossing."

William M. Cotter, Regional Manager of the Wells Fargo Real Estate Group, stated that "Wells Fargo is extremely pleased to be taking a leadership role in financing of 33 Arch Street, demonstrating Wells Fargo commitment to the Boston marketplace. The quality of the sponsorship team will guarantee the success of this thoughtful, well-designed development."

Congress Group Ventures is a full service real estate firm headquartered in Cambridge, Massachusetts. Founded in 1980, the company's success is based on carefully designed and developed projects, the use of the best engineering and design firms and full cooperation with the neighborhood and community from the beginning of the development process to the end of construction.

NEBF, a $9.5 billion pension fund providing retirement benefits to electrical construction workers throughout the United States and Canada, is an active investor in union-built real estate development projects across North America. The NEBF is jointly sponsored by the International Brotherhood of Electrical Workers (IBEW) and the National Electrical Contractors Association (NECA).

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. Approximately 30% of the fund's investments are targeted for new development opportunities. Since the inception of VEF I, the series of funds has found value in nearly $2.5 billion in commercial real estate throughout the United States.

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. The company has $35 billion assets under management in the U.S. Lend Lease Real Estate Investments is a subsidiary of Lend Lease Corporation (ASX: LLC), which is a global, integrated real estate management and services business comprising funds management, project management and construction, and property development.

FleetBoston Financial's commercial real estate finance business is one of the top five bank real estate operations in the country, with $20 billion in commitments and nearly $9 billion in originations in 2000. Fleet offers an extensive array of products including construction and acquisition loans, private placements and mezzanine debt, and offers expertise in areas such as retail real estate, portfolio financing, pension fund lending, REITs, and low income housing tax credits. FleetBoston Financial is the seventh-largest financial holding company in the United States and is a diversified financial services company with assets exceeding $200 billion. Fleet is listed on the New York and Boston Stock Exchanges (NYSE, BSE: FBF).

Wells Fargo & Company (NYSE: WFC) is a diversified financial services company - providing banking, insurance, investments, mortgages and consumer finance from 5,400 stores and the Internet (wellsfargo.com) across North America and elsewhere internationally. Headquartered in San Francisco, Wells Fargo is decentralized in such a way that every local Wells Fargo store is a headquarters for satisfying all customers' financial needs and helping them succeed financially. Wells Fargo has $280 billion in assets and 120,000 team members. Wells Fargo ranked fourth in assets and fourth in the market value of our stock at March 31, 2001, among our peers. Through its Real Estate Group, Wells Fargo provides a complete line of services supporting the commercial real estate industry. Its customers are the experienced developers who have been successfully building their product type for many years, through several real estate cycles. The Wells Fargo Real Estate Group has 21 real estate offices located throughout the country and has recently added new offices in Boston, New York City and Salt Lake City.