Eurocastle Acquires a EUR500 Million German Real Estate Portfolio

Guernsey (ots) - 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
EUR500 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
EUR840 million of acquisitions this year. We are well on our way to
achieving our EUR1 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 opportunity 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 USD23 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 EUR1 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.

Originaltext: Eurocastle Investment Limited
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Contact:

International Administration (Guernsey) Limited
Company Administrator
Attn: Mark Woodall
Tel: + 44 1481 723450