CB Richard Ellis reports strong first half investment levels in Europe

London, July 19th 2007 – CB Richard Ellis Group, Inc. today reported a strong first half for direct ommercial real estate investment in Europe, which totaled €113 billion at June 30, 2007, a 12
percent increase from the first half of 2006. This follows year-on-year increases of 40 per cent in
real estate investment activity in both 2005 and 2006.

The 12% increase occurred despite higher interest rates in both the UK and Europe. In the UK alone, even with higher interest rates than elsewhere in Europe, there has been an increase in total investment turnover totaling €38 billion of transactions, compared with €37 billion for the same period in 2006.

Jonathan Hull, Executive Director in CB Richard Ellis’ European Investment team, commented:
“Central London has continued to play a significant role in the increase in investment turnover in the UK so far this year. Of particular note during this period has been the high level of foreign buyers in Central London, which makes up approximately 70 per cent of the total. Although higher interest rates have had some impact on local investors who use debt to finance acquisitions, foreign buyers continue to see Central London as an attractive market, with Irish, Middle Eastern and Australian investors being particularly active.”

In other European countries investor interest also remained strong. Germany and the CB Richard Ellis Press Release 20 July 2007 Page 2 Netherlands saw increases in activity in the first half of 2007 with both markets predominantly driven by foreign buyers attracted by pricing levels in those countries.

The Central and Eastern Europe (CEE) market saw just under €5.4 billion transacted in the first half of 2007, following last year’s record breaking €12.65 billion of investment activity. Investor interest remains extremely strong in CEE, although market growth is somewhat limited by lack of available product.

Michael Haddock, director of EMEA Investment research added: “The interest in large lot sizes has been particularly notable. There have been a number of large portfolio transactions valued in excess of €1 billion combined with a wide range of substantial deals on single assets such as HSBC’s global headquarters office building at Canary Wharf. The sale of 9 Place Vendôme in Paris also demonstrates that investors are more than prepared to actively compete for the right asset.”