Eurocastle acquires a EUR 2.1 Billion German Real Estate Portfolio from DB Real Estate

Guernsey (ots) - Eurocastle Investment Limited (Euronext
Amsterdam: ECT) today announced that it has signed a definitive
agreement with DB Real Estate to acquire 61 properties from the
open-ended fund DB Grundbesitz Invest, comprising substantially all
of its German commercial real estate assets, for an all-in purchase
price of approximately EUR 2.1 billion.

The properties, totaling approximately 840,000 square meters of
leasable space, consist primarily of high quality class A office
space and approximately 88% of rent is derived from assets located in
or around the five major German markets of Frankfurt, Munich, Berlin,
Hamburg and Düsseldorf. Over 83% of the portfolio is currently
occupied, with an average remaining lease term of approximately 5
years. The initial rental yield is approximately 5.6% and the NOI
yield is approximately 5.3%.

Eurocastle will fund the purchase with equity raised recently
through an institutional offering of its ordinary shares and
long-term, fixed rate debt financing. The debt financing will amount
to approximately 75% of assets at an average yield of approximately
4.6%. The Company expects to fund the purchase of the majority of
assets in the first quarter of 2007.

This agreement brings Eurocastle's total fundings and commitments
in 2006 to approximately EUR 3.0 billion (excluding the EUR 2.0
billion acquisition of the Dresdner portfolio earlier this year). The
average NOI yield of the assets acquired through these transactions
is approximately 5.6%.

Following completion of its 2006 commitments, Eurocastle will own
approximately EUR 5.5 billion of German commercial real estate with
total leasable space of 2.5 million square meters. By rent, the
portfolio will consist of approximately 59% office, 17% retail, and
8% bank halls. Geographic concentrations will include 33% in the
Frankfurt region, 12% in the Munich region, 6% in the Düsseldorf
region, 7% in the Hamburg region and 6% in the Berlin region.

Additional property statistics of the acquisition and its impact
on Eurocastle's total property portfolio will accompany the fourth
quarter 2006 results announcement.

About Eurocastle

Eurocastle Investment Limited is a closed-ended investment company
with a focus on German commercial real estate assets. The Company is
Euro denominated and is listed on Euronext Amsterdam under the symbol
"ECT." Eurocastle is managed by Fortress Investment Group, a global
alternative investment and asset management firm with over $26
billion in equity capital currently under management. For more
information regarding Eurocastle Investment Limited and to be added
to its email distribution list, please visit www.eurocastleinv.com.

Forward-Looking Statements

This announcement contains statements that constitute
forward-looking statements and relate to, amongst other things,
future commitments to acquire properties from DB Real Estate and the
ability to raise financing in relation thereto. Forward-looking
statements are generally identifiable by the use of forward-looking
terminology such as "will", "may" or other similar words or
expressions. Such statements are based on certain assumptions, future
expectations, plans and strategies. The Company's ability to predict
results or the actual effect of future plans or strategies is
limited. Although the Company believes that the expectations
reflected in such forward-looking statements are based on reasonable
assumptions, its actual results and performance may differ materially
from those set forth in the forward-looking statements, in particular
as a result of the risk that the Company may not to be able to close
on the purchase of any or all of the assets or reach an agreement or
suitable returns with respect to any related financing.

Originaltext: Eurocastle Investment Limited
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Contact:
International Administration (Guernsey) Limited
Company Administrator
Attn: Mark Woodall
Tel: + 44 1481 723450


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