Eurocastle acquires a €500 million German real estate portfolio

Released: 04/09/2006

Guernsey. 4 September 2006 – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today announced that it has signed a definitive agreement with DB Real Estate Investment GmbH to acquire a portfolio of 6 office properties for an all-in purchase price of approximately €500 million. The properties are located in Berlin, Frankfurt, Dusseldorf, Wiesbaden, Eschborn and Sulzbach. The purchase price reflects an unleveraged initial yield on in-place cash flow of approximately 5.5%.

Bruce Snider, Fortress Managing Director, commented, “We are pleased to announce this transaction, which brings us to a total of €840 million of acquisitions this year. We are well on our way to achieving our €1 billion target of new investments for the year.”

The properties have an average age of less than 10 years and total 190,600 square meters. The portfolio has stable cash flows with an average lease term of 7 years and over 80% of annual revenue contributed by major corporate tenants. An initial occupancy rate of approximately 93% gives an opprtunity for future income growth.

Guido Piñol, Fortress Managing Director and Head of German Commercial Real Estate Acquisitions, added, “We are very excited about this portfolio which combines great real estate with long-term cash flows. This acquisition fits our property investment strategy of acquiring high quality commercial real estate let to credit tenants with an opportunity for significant value creation through active management.”

Eurocastle expects to initially fund the purchase with a combination of debt financing using existing lines and a committed long-term fixed loan facility secured by the portfolio. The closing of this purchase is expected to occur early in the fourth quarter of 2006.

About Eurocastle
Eurocastle Investment Limited is a closed-ended investment company which invests primarily in German commercial real estate assets and real estate related debt. 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 $23 billion in equity capital currently under management. For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.

Forward-Looking Statements
Some of the statements in this announcement may include forward-looking statements which reflect Eurocastle’s or, as appropriate, Eurocastle’s board’s current views with respect to future events and financial performance including statements relating to the achievement of €1 billion new investments for the year, methods of funding the acquisition of the portfolio, timing for completion of the acquisition of the portfolio and opportunities for significant value creation. Statements which include the words “expect”, “intend”, “plan”, “project”, “anticipate”, “will”, “believe”, “forecast” and similar statements of a future or forward-looking nature identify forward-looking statements for the purposes of the US federal securities laws or otherwise.

All forward-looking statements address matters that involve risks and uncertainties. Accordingly, there are or will be important factors that could cause the Company’s actual results to differ materially from those indicated in these statements. Eurocastle can give no assurance that its expectations will be attained.

Any forward-looking statements reflect the Company’s current views with respect to future events and are subject to risks, uncertainties and assumptions relating to Eurocastle’s operations, results, strategy and liquidity. Factors that could cause actual results to differ materially from those indicated in these statements include, but are not limited to, the Company’s ability to identify and invest in suitable properties and changes in the capital markets which would affect the ability of the Company to finance the portfolio. Subject to its legal and regulatory obligations, Eurocastle undertakes no obligation to publicly update or review any forward-looking statement contained in this announcement, whether as a result of new information, future developments or otherwise.