Economic Report Reveals How European Real Estate Executives Adapt in a Post-Recessionary Environment

As they cope with a recession and property market downturn, leaders of Europe's real estate companies rewrite their business plans

LONDON, December 15 - Despite seeing first green shoots of recovery in select European
economies, in an uncertain environment, most remain focused on risk
management - protecting their assets and conserving capital, according to an
annual economic report released today.

Based on interviews and surveys with approximately 100 leaders across
European property companies (public and private), investment banking,
investment management, private equity and brokerage firms, banks and
insurance companies, and other sectors, the report - The Business Enterprise
in Europe - provides an assessment of how real estate executives are managing
their companies through challenging economic conditions and how they are
adapting to transformative changes within the broader industry. The study was
completed by Ferguson Partners Europe Ltd, a leading provider of executive
search services, in conjunction with the Urban Land Institute (ULI), a global
non-profit research and education institute dedicated to responsible land
use, and ULI EMEAI (Europe, Middle East, Africa and India) which serves the
Institute's members in those countries.

Respondents reveal that leaders are intensely focused on maintaining
stable cash flows, looking for every opportunity to cut costs, redoubling
efforts to maintain good relationships with investors, and taking the
initiative to keep closer communication with lenders. More than ever, leaders
are also re-examining and restructuring talent pools to ensure that
organisations have teams with vision, knowledge, and skill to drive further
growth and success in the real estate industry of the future.

According to the report, the forecast regarding headcount change in 2010
is not overly encouraging. Demand will be most significant among investment
managers and property services firms, with investment management firms
expecting to increase their total workforce headcount by an estimated 2.8%
and the private equity sector anticipating an increase in total workforce
headcount by an estimated 0.7%. The development/construction and
banking/lending sectors are expected to see decreases in their workforce
decrease by 1.3% and 3.3% respectively.

The report notes that, in general, salaries throughout the real estate
industry are expected to be flat to slightly up for 2010. 2009 cash
incentives will be down and equity awards will be higher to retain and
incentivise executives where common equity holdings are largely meaningless.
Creating compensation programs is particularly challenging, as companies try
to restructure or replace plans that were developed during boom times, the
report says.

ULI EMEAI President William Kistler said: "Real estate executives are
being tested as never before. This report offers a unique insight into how
well they are coping and what strategies they are using. Without a doubt,
human capital is a top priority as companies move beyond survival towards
success for the future."

William J. Ferguson, Co-Chairman and Co-CEO of FPL Advisory Group
commented, "Companies are focused on strengthening asset management and
restructuring teams, as well as finding executives who can interface
effectively with disgruntled investors and lenders."

Serena Althaus, Managing Director, Ferguson Partners Europe noted,
"Experience is at a premium right now. Business leaders who started their
careers in the early '90s have not managed through a significant downturn
before. There is therefore a demand for those who have been through this - or
something similar - previously. The large-scale change of senior management,
across Europe, over the last two years, illustrates the point."

Geographically, growth seems to be focused in Western Europe and, on a
global basis, in Asia. Thirty-two percent (32%) of respondents expect to
increase their workforce in Western Europe, while 41% of respondents expect a
decrease in Southern Europe and 43% of respondents expect a decrease in
Eastern Europe. Nearly one-half (49%) of respondents expect to increase their
workforce size in Asia in 2010.

Many Business Enterprise in Europe respondents were buoyed by signs of
recovery in Europe's economies and property markets, although it could be
many months before Europe recovers. Some companies have started to raise
capital and to look for investment opportunities, while others continue to
lower debt, manage assets more intensively, and strengthen their portfolio by
selling non-core assets.

"As firms continue to focus on legacy issues, they are also mindful of
the opportunity ahead and are making sure to allocate a percentage of their
time, focus, and resources on new initiatives such as creating a debt or
distressed investment capacity or expanding their capital formation
infrastructure," added James D. Dell'Olio, President and Senior Managing
Director of Ferguson Partners Ltd.

The full report, The Business Enterprise in Europe: Leadership
Perspectives, is available at www.fpladvisorygroup.com.

About the ULI-Urban Land Institute

ULI-the Urban Land Institute is a not for profit research and education
organisation supported by its members. The mission of the Urban Land
Institute is to provide leadership in the responsible use of land and in
creating and sustaining thriving communities worldwide. Founded in 1936, the
institute now has more than 33,000 members in 95 countries worldwide,
representing the entire spectrum of land use and real estate development
disciplines, working in private enterprise and public service.

As the preeminent, multidisciplinary real estate forum, ULI facilitates
the open exchange of ideas, information and experience among local, national
and international industry leaders and policy makers dedicated to creating
better places.

About FPL Advisory Group

FPL Advisory Group ("FPL") is a family of companies focused on providing
highly specialised advisory services to the real estate and related operating
and financial services industries. Through our complementary practice areas,
we work with our clients to develop the right talent, leadership, structure,
and strategies for success in today's intensely competitive marketplace.

FPL is comprised of two primary operating companies that work together to
serve a common client base. Ferguson Partners provides executive, director,
and professional search services. FPL Associates provides a range of
specialised consulting and finance-related services. FPL's survey practice
conducts regular surveys on hiring and compensation practices in specific
sectors of real estate as well as across the industry as a whole.

For the ULI, Trisha Riggs, +1-202-624-7086; or For FPL Advisory Group, Katherine Fairchild, +1-312-368-0569