Hudson Pacific Properties

June 23, 2010

      EdgeRock Realty Advisors ("EdgeRock"), a strategic joint venture between Compass Advisers, LLP ("Compass") and FTI Consulting, Inc., is pleased to announce the $250.2 million initial public offering (NYSE:HPP) of  Hudson Pacific Properties ("Hudson").  Hudson is a California-focused office REIT that owns, operates and acquires high-quality office properties in select growth markets, primarily in Northern and Southern California.

      The transaction was completed under very challenging market conditions, as the European debt crisis and fears of a delayed economic recovery led to volatility in the financial markets.  According to Bloomberg News, more than 15 companies in the U.S. had postponed or withdrawn deals in the prior two months, and only 43% of IPOs in 2010 had priced within the offering range.  Hudson was the first REIT IPO to price in two months, and is only the second property REIT to successfully price within its offering range ($17 to $19 per share) since October 2007.

      EdgeRock was a 100% advocate for, and trusted advisor to, Hudson, helping it achieve a successful offering, while maximizing sponsor value and positioning the company for future growth.  Working closely with the banks leading the transaction (Bank of America, Merrill Lynch, Barclays Capital and Morgan Stanley), EdgeRock assisted Hudson throughout the IPO process, helping to structure the initial transactions with contributors of properties, structure the IPO transaction and coordinate the IPO process.  In addition, EdgeRock helped select underwriters, identify Board Members, draft business strategy portions of the registration statement, prepare road show materials, and structure, negotiate and close the company's $200 million credit facility.  EdgeRock also sourced and assisted with future acquisition opportunities for Hudson's pipeline.

      With the successful completion of this transaction, Hudson has a total equity market capitalization of approximately $400 million and total enterprise value of approximately $500 million.  Major shareholders include Farallon Capital Management and Morgan Stanley, who contributed properties to Hudson as part of the IPO transaction.  With a footprint in all major California markets, Hudson is poised for significant growth.