Lend Lease's Value Enhancement Fund IV and JBCAcquisition and Development Fund I Acquire 333...

Business Editors

CHICAGO--(BUSINESS WIRE)--Aug. 25, 2000

Lend Lease Real Estate Investments, Inc. and The John Buck Company announced today the acquisition of 333 West Wacker Drive, a Chicago office property. The John Buck Company, who will also manage and lease the building,

acquired its interest on behalf of The JBC Acquisition and Development Fund I. Lend Lease's majority interest was purchased on behalf of Value Enhancement Funds IV, a real estate opportunity fund for institutional investors. The property was purchased from Overseas Partners Capital Corp. for an undisclosed price.

333 West Wacker enjoys a prominent location in Chicago's West Loop sub-market and is widely considered one of the top office buildings in Chicago, as well as being a highly recognized architectural feature of the city's skyline. The property is located along the Chicago River and is bounded by Wacker Drive, Franklin Street and Lake Street.

"We expect 333 West Wacker to be a sound financial investment," says Charles Beaver, principal in charge of JBC Fund acquisitions for The John Buck Company. "The building's award-winning design, with the curved facade that addresses the bend of the river, makes it one of the city's most unique and admired properties."

Constructed in 1983, the 333 West Wacker Drive office building contains 826,632 square feet of rentable space throughout its 36 floors. The property is currently 93% occupied, with lead tenants including The John Nuveen Company and Skadden, Arps, Slate, Meagher and Flom.

Jim Ryan, principal and portfolio manager of Lend Lease's Value Enhancement Fund IV said, "333 West Wacker was a great opportunity to acquire a Class-A, trophy-quality asset in Chicago's strongest sub-market for a price below replacement cost. We also see additional upside potential through technological upgrades to the property."

"Over the next two years, we plan to introduce some enhancements to the property to support the technology requirements of today's high-tech firms," added Beaver. "An upgraded telecommunications infrastructure will be installed to provide tenants greater access to high-speed Internet connections, and improved electrical and cooling capacity are also planned."

Lend Lease's Value Enhancement Funds IV is the latest 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. Since the inception of VEF I in 1993, the series of funds has found value in almost $2 billion in commercial real estate throughout the United States, including One North Wacker Drive, the premier 51-story, 1.3 million square foot office development in downtown Chicago. One North Wacker is also a joint venture with The John Buck Company.

The VEF Funds are managed by Lend Lease Real Estate Investments which completed $12.7 billion in transactions in the calendar year 1999, including $4.1 billion in equity acquisitions, $2.2 billion in mortgage originations, $2.2 billion in dispositions and $1.4 billion in financing.

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 $41 billion in real estate and commercial mortgages under management for more than 500 institutional and private clients in the U.S. The company's real estate portfolio totals over $1.9 billion in equity assets under management in the Chicago area and includes 200 South Wacker, Cityfront Center, Equitable Building, Morton International Building, a joint venture interest in 10 & 30 South Wacker and One North Wacker.

On a worldwide basis the Lend Lease Group is an integrated real estate funds management and services business comprising funds management, project management and construction and property development. In real estate funds management, Lend Lease provides equity and debt origination and management, in public and private markets, and manages $48 billion on behalf of clients globally. Lend Lease provides project management and construction services in almost 40 countries, usually on a fee for service basis, for a blue chip client base with a high level of repeat business. In property development, Lend Lease has expertise in commercial, retail and complex urban mixed use developments, with a strong retail focus, in Europe, Asia, Australia and the US, utilizing primarily third party capital.

The JBC Acquisition and Development Fund I is a closed-end real estate investment fund operated by The John Buck Company. The JBC Fund is the exclusive vehicle for all investment activity of The John Buck Company for the purpose of investing in commercial, residential, retail and mixed-use properties in Chicago and other strategic Midwest cities.

The John Buck Company is currently one of the Midwest's most active developers with several projects under development in Chicago, including: One North Wacker; North Bridge, a 5.1 million-square-foot, mixed-use development featuring Nordstrom, DisneyQuest and ESPN Zone; and a 40-story office and residential property at State and Erie. Its development portfolio in downtown Chicago includes 190 South LaSalle Street, 35 West Wacker Drive, 515 North State Street, 200 South Wacker Drive and the 1992 redevelopment of the Sears Tower. The company's extensive development efforts were recognized at the 12th Annual Chicago Real Estate Awards Dinner at which The John Buck Company was named "1999 Developer of the Year" and awarded the 1999 Development of the Year title for City Block 120.

The John Buck Company, founded in 1981, is a full-service real estate firm headquartered in Chicago employing more than 400 people in its Midwest and New York offices. The company specializes in commercial, mixed-use and residential properties. For additional information, visit The John Buck Company's Web site at www.tjbc.com.