Carlyle Group Acquires Salford Quays Site For £30 Million Development; Joint Venture with Abstract Nikal Ltd

London - The Carlyle Group (“Carlyle”), the global private equity firm, today announces that, in conjunction with its joint venture partner Abstract Nikal Ltd, it has acquired an 8.42 acre site in Salford Quays, near Manchester, ahead of a £30 million regeneration project.

The site was originally used by vendors, Colgate, for toothpaste and deodorant production. It includes offices and significant good quality cleared production and warehouse space as well as approximately 500 car parking spaces. It is one of the largest sites available in the key regeneration area of Salford Quays and lies within the area designated “Media City”, which is set to benefit from the relocation of the five BBC departments, between now and 2011. The site is also next to the Exchange Quay office led development.

The joint venture will work on a number of different strategies for the site, liaising closely with Salford City Council and the Salford URC with the aim of fulfilling demand in the region for good quality, well- located space at competitive rates. Marketing for the development will commence immediately, with Canning O’Neill and Cushman & Wakefield being appointed as agents for the scheme. An extensive regeneration and redevelopment programme is planned with the potential to include office, data centre, media use and hotel space.

The site enjoys excellent communications links and is both next to a metro station and two miles from Manchester city centre. It is also easily accessible from the M62 motorway and a short drive to Manchester International Airport.

This is Carlyle’s second development in the Manchester area. It recently completed its acquisition of an office development, Piccadilly Place III, in Manchester City centre and started work on an adjacent building, Piccadilly Place IV, developed by Argent. Carlyle made the acquisition through its third European Real Estate Fund, Carlyle Europe Real Estate Partners III, which closed in June 2008 having raised €2.2 billion of equity.

Commenting on the acquisition, Robert Hodges, Managing Director of The Carlyle Group, said: “This acquisition takes advantage of our strong equity base to deliver potential for long term value through an opportunistic investment approach. We hope to be able to announce more such acquisitions in the UK and Europe in the coming months.”

“We are strong believers in the future development of the Manchester area as a vibrant business centre and believe that this site will benefit considerably from the regeneration and inward investment interest that is focusing on the Salford area. Importantly, the space that we have acquired is large and flexible enough for us to consider attracting a range of occupiers both local and from further afield, looking for affordable, quality space built to meet their needs.”

Mark Glatman, Chief Executive of Abstract added: “This site is incredibly prominent and well-located. The existing buildings will lend themselves well to the provision of highly competitive short-term accommodation and the site offers huge development potential in the longer term.”

Nick Payne, Managing Director of Nikal commented: “This is a hugely significant purchase based upon a strategy of providing one of the largest single office refurbishments in Manchester. The building is unique as it is of modern design and offers floor plates of 90,000 sq ft. Once upgraded, the building will provide highly competitive office accommodation in a market that will seek quality and good value for money.”

The Manchester office of Cushman & Wakefield represented Colgate.

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