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News Release

London – Moscow

Direct Investment in European Commercial Real Estate Q1 2009

Volumes Down but Signs of Improving Sentiment

London – Moscow, 21 April 2009 - Direct investment in European commercial real estate reached €12bn in Europe in Q1 2009, down 30% on volumes in the previous quarter and 70% lower than Q1 2008, according to new research from Jones Lang LaSalle. Core Western European markets accounted for 95% of total investment volumes, whilst Central and Eastern European markets saw very little activity.

Tony Horrell, Head of European Capital Markets at Jones Lang LaSalle said: “In the first quarter of 2009 we have noted improving sentiment and increased bidding; in the last three months we have seen investors seeking high quality and long term good income. However there is a lack of good prime product and at the same time the accepted definition of the prime asset class has narrowed considerably.  Whilst yields in some markets moved out marginally in the last quarter, yields in many markets remained stable, for example in the City of London, Amsterdam, Frankfurt, Hamburg, Munich and Paris. This genuine interest from some investors is a positive sign but only time will tell if key deals will sign in the coming months.”

In the UK direct commercial real estate investment volumes were €4.4bn in the first quarter of 2009, a slight upturn (4%) compared to the previous quarter, and largely accounted for by transactions in the central London market. In Germany €1.6bn was transacted in the quarter, down almost 50% on the previous quarter; the lack of transactions reflecting a ‘wait and see’ attitude from domestic investors who have not been forced into distressed selling as well as the lack of debt required to fund larger transactions.  Investment activity in Central and Eastern Europe (including Russia) was limited to a handful of transactions in Q1 2009, totalling €536m.

About Jones Lang LaSalle
Jones Lang LaSalle (NYSE:JLL) is a financial and professional services firm specialising in real estate. The firm offers integrated services delivered by expert teams worldwide to clients seeking increased value by owning, occupying or investing in real estate. With 2008 global revenue of $2.7 billion, Jones Lang LaSalle serves clients in 60 countries from 750 locations worldwide, including 180 corporate offices.  The firm is an industry leader in property and corporate facility management services, with a portfolio of approximately 1.3 billion square feet worldwide. LaSalle Investment Management, the company’s investment management business, is one of the world’s largest and most diverse in real estate with more than $46 billion of assets under management.
In Russia and CIS Jones Lang LaSalle have offices in Moscow, St. Petersburg, Kiev and Almaty. Jones Lang LaSalle, Russia was voted Consultant of the Year in 2004, 2006, 2007, 2008 and 2009 at the Commercial Real Estate Awards (Russia). For further information, please visit our Web site,