Principal Real Estate Investors Acquires San Francisco Office Tower

DES MOINES, Iowa--(Business Wire)--Principal Real Estate Investors, one of the largest real estate
investment firms in the United States, announced today that they have
acquired 150 Spear Street office tower in San Francisco, Calif.

The 256,827 square foot building enjoys an ideal location on the
vibrant Spear Street Corridor in San Francisco's South Financial
District. The property has unobstructed views of San Francisco Bay, as
well as easy access to the Bay Bridge and Highways 101 and 280.

"This acquisition continues our strategy of acquiring quality,
well-located assets in premier markets," said Christopher Aust,
director of acquisitions and dispositions, Principal Real Estate
Investors. "We are excited about the opportunity to offer a
significant amount of high-quality office space for lease in a
desirable sub-market, with outstanding Bay views, and close to all
forms of transportation."

Constructed in 1981, the 18-story Class-A office building offers
underground parking and features a continuous ribbon window line,
allowing excellent views of the San Francisco Bay. The property is
currently 78% occupied by a number of high-quality tenants, including
NASDAQ, Kessler Pacific, Department of Defense and Market Tools.

About Principal Global Investors:

Principal Global Investors is a diversified asset management
organization and a member of the Principal Financial Group(R), with
expertise in equities, fixed income and real estate investments, as
well as specialized overlay and advisory services. Principal Global
Investors manages $244.9 billion in assets(1) primarily for retirement
plans and other institutional clients.

About Principal Real Estate Investors:

Principal Real Estate Investors is the fourth largest
institutional real estate manager in the United States based on
tax-exempt assets under management(2) and manages or subadvises $40.4
billion in commercial real estate assets. The firm's real estate
capabilities include both public and private equity and debt
investment alternatives. Principal Real Estate Investors is the
dedicated real estate group of Principal Global Investors, a
diversified asset management organization and a member of the
Principal Financial Group(R).

About the Principal Financial Group:

The Principal Financial Group(R) (The Principal (R))(3) is a
leader in offering businesses, individuals and institutional clients a
wide range of financial products and services, including retirement
and investment services, life and health insurance and banking through
its diverse family of financial services companies. A member of the
Fortune 500, the Principal Financial Group has $306.0 billion in
assets under management(4) and serves clients worldwide from offices
in Asia, Australia, Europe, Latin America and the United States.
Principal Financial Group, Inc. is traded on the New York Stock
Exchange under the ticker symbol PFG. For more information, visit
www.principal.com.

(1) As of Sept. 30, 2007, Principal Global Investors is the asset
management arm of the Principal Financial Group (R) (The Principal
(R)) and includes the asset management operations of the following
subsidiaries of The Principal: Principal Global Investors, LLC;
Principal Real Estate Investors, LLC; Spectrum Asset Management, Inc.;
Post Advisory Group, LLC; Columbus Circle Investors; Edge Asset
Management, Inc.; Morley Financial Services Inc.; Principal Global
Investors (Europe) Limited; Principal Global Investors (Singapore)
Ltd.; Principal Global Investors (Australia) Ltd.; Principal Global
Investors (Japan) Ltd.; and the majority owned affiliates of Principal
International, Inc.

(2) Ranked by U.S. institutional tax-exempt assets, out of 50
managers profiled, as of June 30, 2007. "Real Estate Managers,"
PENSIONS & INVESTMENTS, Oct. 15, 2007

(3) "The Principal Financial Group" and "The Principal" are
registered trademarks of Principal Financial Services, Inc., a member
of the Principal Financial Group.

(4) As of Sept. 30, 2007

Principal Financial Group
Joelle Kline, 515-246-4907
kline.joelle@principal.com
or
Tina Marchetti, 515-248-0065
marchetti.tina@principal.com

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