Completion of Agreement for LaSalle re Compass Transaction

Document date: Fri 02 Oct 1998
Published: Fri 02 Oct 1998 00:00:00
Document No: 168600
Document part: A
Market Flag: N
Classification:

HOMEX - Sydney

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Lend Lease Corporation ("Lend Lease") and LaSalle Partners
Incorporated ("LaSalle") have announced the completion of the
agreement for LaSalle to acquire from Lend Lease the COMPASS
Management and Leasing operations worldwide and the US Retail
Property Management Business. The closing on the Australian portion
of the transaction is, however, expected in a few weeks (following
the fulfilment of certain customary conditions including the transfer
of real estate licenses).

million over five years.

We reiterate that Lend Lease's global real estate advisory business,
Lend Lease Real Estate Investments, was not a part of this
transaction, Also excluded from the sale are the investment
management operations of Lend Lease's US retail management business
and its retail property and investment management businesses outside
of the United States.

A copy of the joint media release is attached.

P Crewes
GENERAL COUNSEL & SECRETARY

CONTACT: Magnes Welsh-LaSalle Partners (312)228-2471
Alain Robinson - LaSalle Partners (404)240-2137
Jonathan Miller - Lend Lease Real Estate Investments (212)554-1967
Jill Campbell - Lend Lease Corporation 011(612)9236-6065

LA SALLE PARTNERS AND LEND LEASE COMPLETE COMPASS TRANSACTION
CREATING THE LARGEST U.S. MANAGEMENT SERVICES COMPANY
New Management Services Team Announced

CHICAGO, October 1, 1998 .. LaSalle Partners Incorporated (NYSE: LAP)
and Lend Lease Corporation Limited (AUS: LIC) today announced that
LaSalle has completed the acquisition of two Lend Lease real estate
services businesses: COMPASS Management and Luang with operations in
the United States, Brazil and the United Kingdom, and the U.S. retail
property management business. The combined business, now called
LaSalle Partners Management Services, Inc., creates the largest U.S.
management. Subject to the fulfilment of certain customary
conditions Including obtaining necessary real estate licences,
LaSalle expects to complete the acquisition of the Australian portion
of the COMPASS business in the next few weeks.

over five years. The purchase is being financed by a new $175-million
acquisition credit facility and borrowings on LaSalle's existing
revolving credit facility.

Headquartered in Chicago, the combined organization is equally
divided between property management for institutional owners and
facility management for corporate and other real estate owner-
occupants. LaSalle now has improved geographic coverage to serve
clients in nearly 190 markets in the United States and six key
international markets. The acquisition enhances LaSalle's position as
the facility management industry leader in the United States, by
ases LaSalle's retail portfolio

with the addition of 30 million square fact in 36 regional malls,
shopping centers and community centers in 19 states.

MANAGEMENT SERVICES TEAM NAMED

Robert C. Spoarri, President and Chief Operating Officer of LaSalle
Partners Incorporated, is also Chairman and Chief Executive Officer
of LaSalle Partners Management Services. The business has two Vice
Chairman: Charles K. Ealor, Jr., formerly the President and Chief
Executive Officer of LaSalle Partners Management Services, and Gary
R. Sligar, formerly Chairman and Chief Executive officer of COMPASS.
Bruce W. Ficke, formerly President of COMPASS, serves as President of
Facility Management Brian K Ross is President of Leasing and
Management; Paul Bryan is President of Development; and Tod D.
Lickerman is President of Project Management. Mary P. Taylor
continues as Chief Financial Officer and Catherine W. Stephenson
continues as Chief Administrative Officer Of LaSalle Partners
Management Services.

Lend Lease's global real estate advisory business, Land Lease Real
Estate Investments, was not part of the transaction. Also excluded
were the investment management operations of Lend Lease's U.S. retail
management business and its retail property and Investment management
businesses outside the United States.

LaSalle Partners Incorporated, founded in 1968 end headquartered in
Chicago, is a leading vertically integrated real estate services and
investment firm providing investment management, management services,
and corporate and financial services for public Bad private
institutions and other real estate owners, users and Investors
worldwide. LaSalle Advisors Capital Management, Inc., the Investment
management subsidiary of LaSalle, is a loading global real estate
advisory company with assets under management of approximately $14
billion in domestic and International investments, including
approximately $3.9 billion outside the United States.

Land Lease Real Estate Investments manages $28.5 billion in real
estate and mortgage portfolios for 350 institutional clients
including the Equitable Life Assurance Society of the U.S.
Headquartered in New York, the company operates in more thin 30 major
cities on five continents, it offers products and services in core
real estate, enhances return funds, REITs, mortgages, and CMBS,
investing in the United States and globally. Land Lease Corporation
Limited is an international property and financial services group
with $44.1 billion in total funds under management worldwide. in
addition to real estate investments, Lend Lease operates in the
arenas of project management and construction, property development,
funds management, life insurance, information technology,
capital services and equity investments. As of June 30,1998, the
company had a $4.9 billion market capitalization.