FOR IMMEDIATE RELEASE

October 2, 2006

HARBOR GROUP INTERNATIONAL RE-ENTERS EUROPEAN
MARKET WITH INVESTMENT IN UNITED KINGDOM AND COMMITS TO EXPANDING OVERSEAS INVESTMENTS; EUROPEAN
ACQUISITION OFFICER HIRED


An affiliate of Harbor Group International L.L.C. of Norfolk, Va., has made a 50% equity investment in Gemini Centre, a single tenant commercial asset in the United Kingdom.  The remaining equity will be contributed by Oakwood Properties, a real estate investment firm with significant investment experience in the UK.  The purchase price for the Property is $15,336,000.

The 66,729-square-foot project consists of two buildings located in the Linford Wood section of Milton Keynes. Milton Keynes is an established commercial area of England that lies approximately 50 miles northwest of London and approximately 65 miles southeast of Birmingham.

The sole tenant at the property is Tiscali UK Limited. It is the principal operating company in the United Kingdom of Tiscali SpA, one of the largest independent European telecommunications companies with approximately 4.7 million active users. The lease term began in June 2000 and expires in June 2020.  The property will be managed by Oakwood Properties.

The purchase marks Harbor Group International’s return to the European market. The company has held a number of assets in the UK in its history but sold those properties in recent years.

“We think it is very important to continue to diversify the geographic scope of our investments and, to that end, we have been actively pursuing opportunities in various European markets”, commented T. Richard Litton, Jr., President of HGI.  “The company has also hired a European Acquisitions Officer, who will be responsible for sourcing investments in Europe,” Litton said. 

HGI, which holds an investment portfolio in excess of $1.5 billion, currently owns approximately 5.8 million square feet of office space throughout the United States and more than 10,000 apartment units. The company maintains offices in Norfolk, New York, Tel Aviv, and Chicago.