Milan, Italy - 24th November 2005

Largest downtown shopping centre in Italy

Project Finance agreement for Freccia Rossa signed

• € 119 million loan agreement
• The loan amount represents approximately 80% of the total estimated investment
• Freccia Rossa will have 28.500 m2 of GLA
• Inauguration is schedule for spring 2007

Today, Sonae Sierra, Coimpredil and AIG Real Estate Partners L.P., a panEuropean real estate fund managed by affiliates of AIG Global Real Estate, signed an 18 year, limited recourse mortgage-backed loan agreement with a Bank Syndicate led by Unicredit Banca Mediocredito  (UBMC) as Mandated Lead Arranger.

This €119 million facility will fund the joint venture special purpose vehicle (Sonae Sierra 50%, AIG global Real Estate 40% and Coimpredil 10%) that will develop the shopping and leisure centre project Freccia Rossa, in Brescia, Italy.  The  loan  amount  represents 83%  of  €143  million  total  estimated investment  and  was  provided  by  a  Bank  Syndicate  formed  by  Banca Mediocredito  e  Unicredit  Banca  D'Impresa (Unicredit  Group),  Intesa Mediocredito (Intesa Group), BIPOP (Capitalia Group), BNL, Banco di Brescia (Banca  Lombarda  Group),  WestLB  Italia.  Freccia  Rossa  is  a  downtown shopping  and  leisure  centre  project  in  Brescia  and  is  a  part  of  the "Comparto Milano" urban renewal project being carried out in a former industrial area.

With its 28.500 m2 of gross leasable area (GLA) and a parking facility for approximately 2.500 cars, Freccia Rossa will become the largest downtown shopping  centre  in  Italy,  providing  Brescia  inhabitants  with  a  family entertainment centre, a multiplex cinema, a health club, a supermarket, 23 restaurants and over 100 further shops.

The Freccia Rossa shopping and leisure centre project is scheduled to open during the spring of 2007 and its commercial launch will take place during next February.

Sonae Sierra, www.sonaesierra.com, is an international shopping centre specialist, with a passion for bringing innovation and excitement to the shopping and leisure centre industry. The Company owns or co-owns 36 Shopping Centres in Portugal, Spain, Italy and Brazil, with a total Gross Lettable Area (GLA) of more than 1,5 million m2. Currently, Sonae Sierra is developing 14 more projects in Portugal, Spain, Italy, Germany, Greece and Brazil, with a total GLA of more than 540.000 m2. In 2004 its shopping centres had more than 400 million visits.

AIG Global Real Estate Investment Corp., www.aigglobalrealestate.com,   is a part of AIG Global Real Estate, a group of International Real Estate companies that actively invests in and manages real estates for clients and American International Group, Inc.  ("AIG") member companies around the world. AIG Global Real Estate owns, manages or has under development approximately US 10 billion in assets in more than 50 million square feet of all property types in major global markets. AIG Global Real Estate is an AIG member company and an affiliate of AIG Global Investment Group.

Coimpredil, www.coimpredil.com, is a private capital Italian company that, relying on the international experience   gained in Western Europe countries, introduces itself on the Italian market as one of the few pure "developers" in the shopping centre field.   Coimpredil has a complete, all round operation   in developing real estate operations, with the aim to optimize, through its own know-how, asset quality. Owner of the King Cross Jankomir in Zagreb, the most important shopping centre of the Balcans, the company is currently engaged in developing projects of some relevance on the national territory."