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GE Real Estate Completes $4.8B Acquisition of Arden Realty
Joaquin de Monet and Robert Peddicord Named to Oversee Arden, Lead Growth

in Dynamic Western Region



May 02, 2006, 01:00 ET from GE Real Estate


STAMFORD, Conn. and LOS ANGELES, May 2 /PRNewswire-FirstCall/ --
Building on its growth ambitions in the Western region of the U.S., GE Real
Estate (NYSE: GE) announced today the completion of its acquisition of
Arden Realty, Inc. (NYSE: ARI), the largest publicly-traded office landlord
in Southern California. The purchase price of approximately $4.8 billion
includes the assumption and refinancing of $1.6 billion of Arden's
outstanding debt. In connection with this transaction, Trizec Properties,
Inc. (NYSE: TRZ) acquired 13 Arden properties for approximately $1.6
billion. The remainder of the Arden portfolio will stay intact and continue
to operate as Arden Realty.
The GE and Arden leadership will leverage Arden's premier presence and
strong relationships in the region to quickly implement a strategic asset
plan to expand further into its core markets. GE will also use the Arden
platform to grow significantly in other California markets, Washington and
Arizona.
One member of GE and four members of the Arden leadership teams have
been appointed to oversee Arden:
-- Joaquin de Monet, Managing Director at GE Real Estate, has been named
President and CEO of Arden Realty.
-- Robert Peddicord, formerly Executive Vice President, Leasing and
Operations at Arden Realty, assumes the role of Chief Operating
Officer.
-- Andres Gavinet, formerly First Vice President and Chief Accounting
Officer, has been named Chief Financial Officer.
-- Howard Stern and David Swartz remain Senior Vice President and Chief
Investment Officer and Senior Vice President and General Counsel,
respectively.
"We invest where there are excellent opportunities for growth, both in
asset value and portfolio size. This transaction significantly expands our
footprint in a market that we think is one of the strongest markets in the
U.S.," commented Joe Parsons, President, North American Equity at GE Real
Estate. "We will continue to assess opportunities to acquire quality assets
in Southern California, and look forward to Joaquin and Robert's leadership
to help us expand Arden's presence in the Western region."
"GE and Arden are a dynamic force in one of the country's most robust
markets," added Peddicord. "GE's solid financial backing and global
resources combined with Arden's local market expertise and outstanding
performance record will greatly enhance Arden's ability to grow in the
Western region of the U.S."
The portion purchased by Trizec Properties includes 13 properties
comprising approximately 4 million square feet.
Tim Callahan, Trizec's president and chief executive officer commented,
"Through this transaction, we have acquired a large, high-quality portfolio
that is well located in markets that we believe have strong economies,
positive employment trends and growing rental rates." Mr. Callahan added,
"We're pleased to have partnered with GE in the execution of this
transaction."
Merrill Lynch acted as the financial advisor to GE Real Estate, and
King & Spalding LLP provided legal advice. Lehman Brothers Inc., Wachovia
Securities, and Secured Capital LLC served as financial advisors to Arden
in this transaction. Wachovia Securities and Houlihan Lokey Howard and
Zukin also rendered fairness opinions to Arden's Board of Directors. Latham
& Watkins LLP and Venable LLP provided legal counsel to the Company. Hogan
& Hartson LLP provided legal counsel to Trizec.
Notes to editors:
About GE Real Estate
GE Real Estate ( http://www.gerealestate.com ) is a world leader in
real estate capital. Formed in 1972, the business has more than $35 billion
in core assets with 34 offices located throughout North America, Europe,
Asia, and Australia/New Zealand. GE Real Estate, backed by its parent
company's AAA rating, offers a broad range of financing, equity and
servicing solutions including: intermediate and long-term mortgage
financing, restructuring and acquisition capital, niche equity
investment/joint ventures, capital markets securitization and placements,
and assert management. As one of the fastest growing units within GE
Commercial Finance, Real Estate has experienced annual growth of more than
10% for the last ten consecutive years.
GE Commercial Finance ( http://www.gecommercialfinance.com ) offers
businesses an extensive array of financial services and products worldwide.
With approximately $217 billion in assets and an expertise in the
mid-market, GE Commercial Finance provides loans, operating leases,
financing programs and innovative structured capital to help customers
grow. GE Commercial Finance is a wholly owned subsidiary of the General
Electric Company (NYSE: GE), a diversified services, technology and
manufacturing company with operations worldwide.
About Arden Realty Inc.
Arden Realty, Inc. is one of the largest office landlords in Southern
California. After the close of the transaction with GE Real Estate, Arden
will have 14.8 million square feet comprised of 103 properties and 175
buildings from Ventura to San Diego counties. Arden is also a nationally
recognized leader in energy conservation and efficiency. For three
consecutive years the Environmental Protection Agency cited Arden as the
"Commercial Real Estate Owner of the Year" for its innovative energy
initiatives and for owning the most energy efficient buildings in a single
portfolio in the nation. For more information on the company, visit the
Arden website at http://www.ardenrealty.com .