Carlyle Marks First Anniversary of Nordic Real Estate Office With New Investment in Copenhagen

Copenhagen, Denmark – Global private equity firm The Carlyle Group today announces the acquisition of the headquarters of TDC, a 49,100 m² office block in downtown Copenhagen, from KTAS Pensionskasse, the pension fund of the Danish telecoms group. Since The Carlyle Group’s first dedicated Nordic real estate office was established in Stockholm, Sweden in June 2006, Carlyle Europe Real Estate Partners has made five investments with a total value of €885 million.

The TDC headquarters includes 19 buildings of mainly office use located on 21 Nørregade, in the medieval part of Copenhagen, which offers the most prestigious retail locations in the city. The property is in the very centre of Copenhagen CBD next to Nørreport Station, the largest public transport link in Denmark. The main part of the property is currently let to TDC, who intend to vacate in April 2009. Carlyle will undertake significant refurbishment of the property to create high quality, modern office premises.

The transaction follows the recent announcement of Carlyle’s planned acquisition of the Copenhagen Wholesale Market, with Hoffmann Ejendomme. It also marks the end of a highly successful first year for Carlyle’s Nordic real estate operation, led by Managing Director, Thomas Lindstrom. Carlyle Europe Real Estate Partners’ other investments in the region since June 2006 include:

* Kadetten, Stockholm, Sweden - 9,600 m² prime office building in central Stockholm
* Copenhagen Wholesale Market, Denmark – creating a new city district on 158,000 m² on site vacated by Copenhagen’s food and flower market
* Globen and Startboxen, Stockholm, Sweden - portfolio of four properties next to the national Globen arena and a modern office building just north of the city
* YLE, Helsinki, Finland – portfolio of 4 office buildings in Helsinki and Espoo, 35,800 m²

Thomas Lindstrom, Managing Director, The Carlyle Group comments: "The TDC headquarters is truly a trophy asset in an attractive setting, right in the centre of Copenhagen. We are very positive about the outlook for the Copenhagen office market, where vacancy has dropped due to demand from the business service and public sectors following sustained economic growth in 2007.

"Over the past year, Carlyle Europe Real Estate Partners has become a major force in the Nordic property market as we have built a prestigious portfolio of assets. We look forward to the year ahead as we continue the hard work on transforming those buildings through the thoughtful renovation and repositioning for which The Carlyle Group has become known over its six years of investment in European real estate."

The Carlyle Group was advised on the transaction by law firm Ronne & Lundgren, technical advisors Birch & Krogboe, architects Arkitema and property advisors Colliers.