Wells Real Estate Funds Acquires More Than $1.3 Billion in Real Estate in 2007

Wells Real Estate Funds Acquires More Than $1.3 Billion in Real Estate in 2007

2.6M Square Feet in Office Properties, 320,000 Acres in Timberland

NORCROSS, Ga. (Feb. 12, 2008) - The investment portfolios of Wells Real Estate Funds, one of the nation's top real estate investment companies, acquired more than $1.3 billion in properties in 2007, including more than 2.6 million square feet of office properties and 320,000 acres of timberland.

"It was another banner year for our acquisitions team," said Leo Wells, president and CEO. "Despite all the fuss about the residential market last year, the fundamentals for quality, investment-grade real estate remained very healthy."

Wells added that, ironically, the "credit crunch" of 2007 may have actually helped the company. "We saw several office deals come back to us after other buyers could not obtain financing, and we acquired several properties last year where we were not the highest bidder," he said. "In office properties, we try to buy with low leverage, and that was a successful strategy for buying office real estate in 2007."

Major office acquisitions included 222 E. 41st Street, a 25-story tower in midtown Manhattan; the world headquarters of CH2M HILL, the engineering and construction firm, outside Denver; and Pasadena Corporate Park, a three-building, Class-A office/retail development in metro Los Angeles. All were acquired by Wells Real Estate Investment Trust II, which now has a portfolio in excess of $4 billion, based on purchase price.

Wells funds include REITs, mutual funds and other commercial real estate investment vehicles. Across its funds, Wells' office portfolio is more than 97 percent leased. The company signed more than 1.2 million square feet in new and renewal leases in 2007.

"Our focus has long been on great, creditworthy tenants, and we had another very good year in leasing," said Don Henry, managing director. "A 97-percent lease rate is quite extraordinary in this business - and that's with an average tenant credit rating, for rated tenants, of A-."

Wells' building portfolios now include a total of more than 20 million square feet of space in 104 buildings, primarily Class-A office properties, geographically diversified across 26 states and Washington, D.C.

Wells also landed one of the year's largest timberland acquisitions, acquiring property and leaseholds totaling 320,000 acres in Alabama and Georgia, in the first acquisition for Wells Timberland REIT.

Wells Real Estate Funds was named in May as one of the Top 25 Commercial Real Estate Brands in the nation, in rankings by the Lipsey Company. In July, Wells was named one of the nation's top 10 office owners by National Real Estate Investor. And in December, Wells was named by Real Estate Forum as one of the nation's top 10 owner/investors.

Wells Real Estate Funds is a national real estate investment company based in suburban Atlanta. Since its founding in 1984, Wells has invested more than $11 billion in real estate for more than 200,000 investors. For more information, see www.wellsref.com.

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements can generally be identified by our use of forward-looking terminology such as "may," "will," "expect," "intend," "anticipate," "estimate," "believe," "continue," or other similar words. Readers of this press release should be aware that there are various factors that could cause actual results to differ materially from any forward-looking statements made in this release. Factors that could cause or contribute to such differences include, but are not limited to, changes in general economic and business conditions, industry trends, changes in government rules and regulations (including changes in tax laws), and increases in interest rates. Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The identifier "Wells Real Estate Funds" is used generally in this communication, and not always in reference to Wells Real Estate Funds, Inc. The portfolios referenced are separate entities, as explained in the products' prospectuses. This is neither an offer nor a solicitation to purchase securities. Such an offer can be made only by prospectus. For a prospectus, contact Wells Investment Securities, Inc., 6200 The Corners Pkwy., Norcross, Ga. 30092-3365 (tel. 800-448-1010). SEC filings: www.wellsref.com/investmentproducts/reit/secfilings.html.

EDITORS NOTE: Don Henry, Wells managing director, is available for interviews on office and leasing trends.

Press Release