Prudential Real Estate Investors Closes International Place Venture; P

    Business Editors

    PARSIPPANY, N.J.--(BUSINESS WIRE)--Jan. 19, 2005--Prudential Real Estate Investors (PREI) announced today that it has acquired a majority stake in Boston's International Place through a partnership to recapitalize the property with The Chiofaro Company. PREI is the real estate investment management and advisory business of Prudential Financial, Inc. (NYSE: PRU).
    The transaction closed Monday, January 10, 2005 after a federal bankruptcy court judge approved a settlement and reorganization plan to satisfy debt on the property. The transaction included $260 million in equity from PREI on behalf of investors in an open-end, commingled fund. PREI initially reached an agreement in September with Fort Hill Square Associates I and II partnerships and navigated the bankruptcy process to complete the acquisition.
    "We are very pleased to close this transaction, creating a partnership with The Chiofaro Company and in the recapitalization of International Place," said J. Allen Smith, managing director and portfolio manager at PREI. "International Place ranks among the premier office properties in Boston and its prominence should only improve as the economy rebounds. We view this as an excellent investment in a city with great potential, with a partner whose expertise in the market is evidenced in the outstanding quality of this asset."
    "We went looking for the best equity partner that would enable us to secure the most attractive capital. Our partnership with PREI has given us a secure base at International Place and a platform to grow our company," said Donald J. Chiofaro, president of The Chiofaro Company. "We could not have asked for a better result and we look forward to a long and expanding relationship with PREI."
    The development of International Place was launched nearly two decades ago by Chiofaro and a team committed to owning and operating a premier Class A office space in Boston. Consisting of a total of 1.8 million square feet of office space, International Place is a world-class building in terms of tenant roster, location, views, amenities, design and lobby finishes. The developers and managers of International Place, The Chiofaro Company, are located on-site for instant response and access.
    PREI provides global real estate investment management services in the United States, Europe, Asia and Latin America. PREI managed total assets of $22.9 billion on behalf of more than 350 clients as of September 30, 2004; net assets under management (i.e., after deduction of associated debt and liabilities) were $15.4 billion. For more information, visit www.prei.com.
    Prudential Financial companies, with approximately $470 billion in total assets under management as of September 30, 2004, serve individual and institutional customers worldwide and include The Prudential Insurance Company of America, one of the largest life insurance companies in the United States. These companies offer a variety of products and services, including life insurance, mutual funds, annuities, pension and retirement related services and administration, asset management, securities brokerage, banking and trust services, real estate brokerage franchises and relocation services. For more information, visit www.prudential.com.

--30--AC/ny*

CONTACT: Prudential Financial, Inc. Theresa Miller, 973-802-7455

KEYWORD: MASSACHUSETTS NEW JERSEY INDUSTRY KEYWORD: REAL ESTATE BUILDING/CONSTRUCTION INSURANCE BANKING MERGERS/ACQ SOURCE: Prudential Financial, Inc.

Copyright Business Wire 2005