The DIC Group is one of the leading investors in the German market for commercial real estate

Press Release

MSREF acquires an interest in real estates of DIC Asset AG

Frankfurt, 05.09.2005

Morgan Stanley Real Estate Funds (MSREF), an internationally active associated company of the US investment bank Morgan Stanley, has just acquired a 50% interest each the in the German eBay headquarters near Berlin and a Telekom property in Hamburg. Both real estate packages had been acquired by DIC Asset AG (Deutsche Immobilien Chancen) with an investment volume of almost € 60 million.

The eBay real estate portfolio acquired in December 2004 has a total area of 19,000 sq. m. and provides space for 1,300 employees. eBay has rented these buildings as German headquarters on a long-term basis. The 15,000 sq. m. of useful area of the Telekom property in Hamburg has been leased to Deutsche Telekom on a long-term basis.

DIC and MSREF have been exclusive joint venture partners for commercial real estate transactions in Germany for more than 12 months. The most recent joint transaction of both companies was the acquisition of a portfolio including 57 properties of Frankfurter Sparkasse. The entire volume of joint transactions since last year amounts to over € 250 million. Apart from this, Morgan Stanley Real Estate Funds has acquired an interest of 25.1% in DIC in July 2005.

Notes on DIC
DIC (Deutsche Immobilien Chancen) was founded in 1998 and, with its innovative investment philosophy and its focus on the German market, is one of the leading and most successful corporations in Germany specializing in commercial real estate transactions. Its business activities include portfolio and asset management, project development and opportunistic investments. The real estate assets managed by the DIC real estate group currently amount to over Euro 700 million.

Notes on Morgan Stanley Real Estate
Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking, and Lending. Since 1991, Morgan Stanley has acquired more than $67.7 billion of real estate assets worldwide and currently manages $36.2 billion in real estate assets on behalf of its clients. Using its own capital, Morgan Stanley also originates upwards of $7 billion in commercial mortgages annually. In addition, Morgan Stanley Real Estate provides a complete range of investment banking services including merger, acquisition and restructuring advisory and recapitalizations, as well as public and private debt and equity financing. Morgan Stanley established its real estate organization in 1969. Morgan Stanley is a global financial services firm and a market leader in securities, investment management, and credit services. With more than 600 offices in 28 countries, Morgan Stanley connects people, ideas and capital to help clients achieve their financial aspirations.

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