Press Release

June 5th, 2008

ORCO has launched it’s construction of Váci1 ORCO Property Group has received a legally valid Building Permit

Budapest, 05 June 2008 – A new premium shopping & lifestyle galleria will be constructed in the former home of the Stock Exchange, on Vörösmarty Square right in the heart of downtown Budapest. Owned and developed by ORCO Property Group, the new “Váci1” is due to open in Spring 2010. The original splendour of the building will be restored in a unique and contemporary style designed by world renowned French architect Christian Biecher, in cooperation with the prestigious Hungarian architect office, K ınig and Wagner.

“It is so exciting to be given an opportunity to open up to the public a hidden architectural gem in Vaci 1 right in the centre of Budapest. This is a unique building and our restoration and transformation of it will announce that Budapest is not only a city of rich history but also a city for the future. Our successful co-operation with the National Office of Cultural Heritage in designing this development has been based on their trust in ORCO as a sensitive and heritage conscious developer. This is based upon our previous and current restoration projects in central Budapest - The Paris Department Store, The Andrassy Hotel and Avenue Gardens” stated Iain Sellers, Managing Director of ORCO .

The Palace of the was constructed between 1911 and 1915, based on the plans of famous Hungarian architect Ignac Alpar. Registered by UNESCO in 1933 as a World Heritage site, the building is subject to official monument protection laws. Such restrictions only served as inspiration for the architects of Váci1 rather than a hindrance. Accordingly, the plans give a new, image-rich, inventive and excitingly fresh look to the interior of the building which so far has only been known from the outside to most people.

Following it’s restoration and reconstruction the building will provide over 11,000sq.m. of retail, dining and lifestyle space. ORCO aim to attract premium and unique retailers giving a tenant mix that will differentiate Vaci 1 from other retail destinations. There will be a rooftop restaurant with breathtaking panoramas of the sights of central Budapest. It will also provide 6,000sq.m of common areas for strolling, sitting and escaping from the intense heat of the Summer and the wet and cold of the Winter.

“As in other major cities of Europe the re-structuring of the downtown retail trends will give a new wave to the city centre and also give back the previous prestige of the famous pedestrian shopping street, Váci utca. With the introduction of premium category international brands new to Hungary, customers will have a different, truly unique shopping and lifestyle experience” said András Kovács, ORCO’s Regional Leasing Director.

In keeping with ORCO’s Sustainable Development policy the building has been designed to ensure lower energy consumption and environmentally friendly operation. Despite the building’s protected status and the restrictions related to this the designers have been able to include a third generation heating-cooling system which should reduce the energy consumption by over 25% of a traditionally designed system.

Basic Facts

Address: 3-5 Deák Ferenc Street, Budapest, Hungary H-1052 Year of Acquisition: 2006 Project Type: Premium Shopping, Dining and Lifestyle Emporium Gross Floor Area: 22,370 sqm Net Floor Area: 17,210 sqm Lettable Floor Area: 11,600 sqm Construction Start: Q2, 2008 Grand Opening: Spring, 2010 The Exclusive Leasing Agent is Colliers International.

For additional information please visit: www.orcogroup.com , www.vaci1.hu or contact:

Luxembourg Paris Prague Luc Leroi Sévérine Farjon Alès Vobruba Tel : + 352 26 47 67 47 Tel :+33 1 40 67 67 00 Tel : +42 02 21 416 311 [email protected] [email protected] [email protected]

*** Orco Property Group is a leading investor, developer and asset manager in the Central European real estate and hospitality market, currently managing assets of approximately EUR 2, 5 billion. Operating in Central Europe since 1991, Orco Property Group is a public company, based in , and listed on the NYSE , Prague, Warsaw and Budapest Stock Exchanges. Orco Property Group operates in a number of countries including, mainly, the , Hungary, , Russia, , and . Orco Property Group is continually analysing investment into new territories.

Orco Property Group is also sponsor of The Endurance Real Estate Fund, a Luxembourg–regulated closed–end mutual fund (f onds commun de placement - fonds d'investissement spécialisé ) organised as an umbrella fund with six sub-funds focused on real estate acquisitions on office and retail, residential, industrial & logistic, and Health Care markets.