Grosvenor Expands U.S. Investment Management Activities with Purchase of Legg Mason Real Estate Services

Grosvenor, the international property development, investment and fund management group, announced today that it has completed the acquisition of Legg Mason Real Estate Services, Inc. (LMRES), a wholly owned subsidiary of Legg Mason, Inc. in a move which will significantly boost Grosvenor’s real estate investment management presence in North America.

PHILADELPHIA, PA (PRWEB) April 6, 2006 -- Grosvenor, the international property development, investment and fund management group, announced today that it has completed the acquisition of Legg Mason Real Estate Services, Inc. (LMRES), a wholly owned subsidiary of Legg Mason, Inc. in a move which will significantly boost Grosvenor’s real estate investment management presence in North America.

With the acquisition of LMRES, Grosvenor will have approximately US$17.3 billion (£10.0bn) in real estate assets under management across the group in 17 countries including $3.3 billion in the U.S. According to Grosvenor Fund Management Director Stuart Beevor, “This acquisition fulfills an important goal to expand Grosvenor’s investment management activities into the U.S. We are delighted to have found a company which, like Grosvenor, has a 50-year track record in North America, and also has an excellent reputation and people who share our philosophy and values.” Beevor added: “This transaction will provide Grosvenor’s co-investors and our existing investment funds with enhanced access to the U.S. real estate market and open up new investment opportunities. We will also gain greater exposure to the U.S. institutional investment community.”

The new combined investment management operation, comprising a staff of 30 and assets of over $2.0 billion, will be led by Douglas Callantine, LMRES’ current President. With headquarters in Philadelphia, PA, the acquired business will add a further hub to Grosvenor’s North American network which currently operates from offices in Vancouver, San Francisco and Washington D.C. Callantine said: “We are pleased to become part of one of the world’s leading and most respected real estate companies. Our clients will benefit from the experience, co-investment opportunities and research capabilities that Grosvenor employs in its operations. In addition, many of our clients have begun to focus on investing internationally. By becoming part of Grosvenor, we will be better able to serve the needs of these investors.”

Following the acquisition, Grosvenor’s expanded investment management business in the US will focus on developing funds for both domestic and international investors, complementing Grosvenor’s existing property company activities in North America where it has over 50 years experience of investment, development, and working with third party investors and partners.

Notes to Editors

Grosvenor

Grosvenor is a privately owned property group with total assets under management of £9.1bn (US$15.6 billion) as of end 2005. The company is owned by the Grosvenor family, headed by the sixth Duke of Westminster. Its origins are in the development and management of London’s largest estate over 300 years ago. Grosvenor is active today in the investment, development and asset management of real estate assets through its operating companies in Britain and Ireland, Americas, Continental Europe and the Australia Asia Pacific regions. Grosvenor has been active in North America for over 50 years. Its North American portfolio consists of more than six million square feet of space including office, retail, industrial and residential properties. For more information about the company, please visit the Grosvenor Web site at: www.grosvenor.com.

Grosvenor Fund Management

Grosvenor Fund Management operates in all of Grosvenor’s key international markets including the U.K. and Continental Europe, North America, Australia and Asia (offices in Hong Kong, Tokyo and Shanghai). Grosvenor Fund Management currently manages over £2.0bn (US$3.4 billion) of funds on behalf of 40 third party co-investors in 11 funds.

Legg Mason Real Estate Services

LMRES is a full-service real estate investment manager and adviser, providing acquisition, asset and portfolio management and disposition services. Prior to acquisition by Grosvenor, LMRES had approximately $1.7 billion (£1.0bn) of real estate investments under management throughout the U.S. from a range of clients including public pension funds, insurance companies, high net worth individuals, and foreign institutional investors. LMRES’ business includes investments across a wide range of asset classes including office, multi-family residential, retail, industrial, hospitality and “for sale” residential land investments. Its client base includes institutional separate accounts as well as the management of two institutional multi-investor real estate investment funds. The registered company name of the new Grosvenor subsidiary is “Grosvenor Investment Management US Inc”.

Legg Mason, Inc. was advised in the transaction by Stifel, Nicolaus & Company, Incorporated.

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