29 May 2008 – GE Real Estate Europe (“GE Real Estate”) is pleased to announce that it has joined BNP Paribas Assurance as a Founding Limited Partner of Capital France Hotel (“CFH” or “the Fund”), which is managed by Algonquin Asset Management France (“AAMF”) with the aim of positioning it for growth on a pan-European scale. The partners intend to grow CFH’s assets under management to €1 billion by the end of 2010 through investing in hotels across the Euro zone countries, Scandinavia and Central and Eastern Europe.

CFH currently owns and manages a portfolio of nine three- and four-star hotels in urban locations, operated under Rezidor brands Radisson and Park Inn. In addition, GE Real Estate has brought three French assets, operated by Accor and Marriott, into the Fund, in exchange for CFH shares and cash.

Algonquin Asset Management France holds a stake in the Fund, thereby aligning its interests with those of the other investors. AAMF has extensive experience in owning and independently managing hotel properties in France.

CFH’s portfolio will be valued at circa €275 million and will comprise 12 assets in France (2,140 rooms) operated under multiple brands. They are:

• two hotels in Paris operated by Accor under the Mercure brand;
• one hotel in Cap d’Ail operated under the Marriott brand;
• nine hotels in regional French cities operated by Rezidor under the Radisson and Park Inn brands, including the Radisson Nice, the Radisson Lyon and the Park Inn Nancy.

GE Real Estate will act as both an investor in the Fund through its initial stake and as an operational partner. GE Real Estate will leverage its investment expertise to contribute to the Fund’s acquisition strategy and the ability of its origination teams across its seven European platforms to provide the Fund with significant local market knowledge and presence.

Commenting on the transaction, Remy Gancel, Managing Director and Head of New Business for GE Real Estate Europe, said:

“This partnership clearly illustrates GE Real Estate’s ability to generate new business, leveraging its strong origination expertise and local knowledge of the European markets. It demonstrates GE Real Estate’s appetite for identifying investment opportunities where it can work alongside excellent partners to grow its business, and its ambitions for expanding CFH in Europe in the mid-scale hotel sector. “We look forward to working together with our partners BNP Paribas Assurance and Algonquin to reach our objective of growing the fund to €1 billion of investments by 2010, allowing us the opportunity to open the fund to other third party investors.”

Nathalie Robin, Head of Real Estate for BNP Paribas Assurance said "This deal is part of BNP Paribas Assurance’s strategy - as a real estate investor - to diversify its investments. BNP Paribas Assurance is very glad to welcome GE Real Estate as a new partner in the Fund which was created in 2007 in partnership with Algonquin. This new step for CFH is an opportunity to reach a European scale."

Jean-Philippe Chomette, Chairman and Founder of Algonquin SA. said:

“We are delighted to welcome GE Real Estate as an investor in CFH. GE Real Estate’s large presence in Europe will enable us to generate unique acquisition opportunities and to grow the portfolio towards our stated € 1 billion assets under management goal by the end of 2010.”

For further information:

Financial Dynamics
Tel: +44 (0)20 7831 3113
Stephanie Highett/Dido Laurimore/Jamie Robertson

About GE Real Estate (www.gerealestate.com) is one of the world's premier commercial real estate companies with more than US$72 billion in assets and a presence in 31 countries throughout North America, Europe, Asia, and Australia/New Zealand. Backed by GE's AAA rating, GE Real Estate offers a comprehensive range of capital and investment solutions including equity capital for acquisition or development, as well as fixed and floating rate mortgages for new acquisitions or re-capitalizations of commercial real estate. With a 28% compound annual growth rate since 1993, GE Real Estate is one of the world's fastest growing and most profitable real estate enterprises.

About BNP Paribas Assurance (www.assurance.bnpparibas.com) is the life and property & casualty insurance unit of BNP Paribas. It counts over 7,300 employees, 2/3 of them outside France, operating in 42 countries. BNP Paribas Assurance’s 2007 gross written premiums totaled €17, 9 billion, including 38 % from business outside France and 44% from business with partners outside the BNP Paribas group. Total assets under management amount to €109 billion. BNP Paribas Assurance is the fourth-largest life insurance company in France and a worldwide leader in creditor insurance.

About Algonquin Asset Management France, AAMF is the asset management subsidiary of Algonquin SA, a Belgian investment group majoritarily owned by Jean-Philippe Chomette. AAMF, through a dedicated team led by Fréderic de Brem, manages the property portfolio of CFH, as General Partner (“Associé Commandité).