Gale International and Vornado Realty Trust Joint Venture Complete $100 Million Acquisition of Boston Filene's Property

NEW YORK and PARAMUS, N.J., Jan. 30 /PRNewswire/ -- Gale International and Vornado Realty Trust (NYSE: VNO) today announced that their 50/50 joint venture has completed the acquisition of Boston's historic Filene's property for approximately $100 million. Mack-Cali Realty Corporation (NYSE: CLI) and institutional investors advised by JPMorgan Asset Management - Real Estate will co-venture Gale International's investment.

The planned $600 million, 1.2 million square feet redevelopment of the Filene's complex is key to the revitalization of the Downtown Crossing area, which sits between the financial district and Boston Common. The developers envision a 38-story tower at the four-building site that would include retail, luxury condominiums, a 250-room 4-star hotel and 600,000 square feet of offices.

The project will be part of the largest historic renovation in the history of Boston and is subject to governmental approvals. Construction is expected to commence June 2007.

John B. Hynes, III, President and CEO of Gale International said, "This substantial joint venture will serve to revitalize Downtown Crossing and address Boston's desire for the development of additional retail, hotel, office and residential space in the heart of the city. The project includes the renovation of the historic Filene's Building, which will be attached to the tower and contain new retail uses along with the hotel, as well as the restoration and expansion of the selling space."

Gale International is a premier, international real estate development and investment company headquartered in New York with offices in Boston; Irvine; California; Seoul and New Songdo, South Korea. Gale International is dedicated to creating environments where people thrive. Commitment to quality and integrity is its core principle.

Gale International plays a signature role in Boston's downtown revival. Gale International and Morgan Stanley Real Estate acquired 23 acres of land in South Boston from News Corporation for $203.75 million in September 2006. This is the largest undeveloped site adjacent to Boston's central business district. The two companies plan to build a dynamic mixed-use community.

Gale International also orchestrated the most valuable commercial real estate deal in the Boston's history with the development and sale of the One Lincoln Street office tower for $705 million in 2005.

Abroad, Gale International spearheads the massive $25 billion New Songdo City development in South Korea. New Songdo is the first new city in the world planned as an international business district, and is thought to be the largest, private real estate venture in history.

Vornado Realty Trust (NYSE: VNO) is the second largest publicly traded real estate investment trust in the United States.

Mack-Cali Realty Corporation is a fully-integrated, self-administered, self-managed real estate investment trust (REIT) providing management, leasing, development, construction and other tenant-related services for its class A real estate portfolio. Mack-Cali currently owns or has interests in 300 properties, primarily office and office/flex buildings located in the Northeast, totaling approximately 34.3 million square feet. The properties enable the Company to provide a full complement of real estate opportunities to its diverse base of approximately 2,600 tenants.

JPMorgan Asset Management is a global asset management leader providing world-class investment solutions to institutions, individuals and financial intermediaries. The firm is responsible for close to $1,013 billion in assets under management (based on assets under management for the Asset & Wealth Management division of JPMorgan Chase & Co. as of December 31, 2006), including $46.3 billion in real estate managed by JPMorgan Asset Management - Real Estate, as of December 31, 2006. With a 37-year history of successful investing and a staff of more than 252 real estate professionals, JPMorgan Asset Management - Real Estate identifies, analyzes, negotiates, acquires, develops, redevelops, renovates, operates, maintains, finances and sells commercial properties, on behalf of its clients. JPMorgan Asset Management's broad investment capabilities and framework for analyzing opportunities in today's complex real estate markets provide critical insights for its institutional clients in both the public and private markets.

Certain statements contained herein may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, risks associated with the timing of and costs associated with property improvements, financing commitments and general competitive factors.

This document is intended solely to report on various investment views held by JPMorgan Asset Management. Opinions, estimates, forecasts, and statements of financial market trends that are based on current market conditions constitute our judgment and are subject to change without notice. We believe the information provided here is reliable but should not be assumed to be accurate or complete. The views contained herein are for illustrative purposes only and are not to be relied upon as advice or interpreted as a recommendation.

Real estate investing may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Real estate investing may be subject to risks including, but not limited to, declines in the value of real estate, risks related to general and economic conditions, changes in the value of the underlying property owned by the trust and defaults by borrower.

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