Prepatory Effort to Begin On Hudson Yards Development Marking the First Site Work on the 26-Acre Site

NEW YORK, NY - Related Companies and Oxford Properties Group, general partner developers of the 26-acre Hudson Yards in midtown Manhattan, today announced that they have entered into contract to begin preparatory work for the development of Hudson Yards. The demolition of the existing Metals Purchasing Building represents the first physical work on the site and the first step in the site work preparation necessary for the development of the Yards. This deconstruction process, managed by Tishman Construction Corporation, is expected to take four months time and paves the way for construction of the first buildings on terra firma, which could commence as early as 2012. Terra firma buildings could be delivered as soon as 2015 pending tenant commitments. The developers have also recently wrapped the site in nearly 30,000 square feet of new construction signage, one of the largest construction hoarding installations ever undertaken, and launched a web presence at www.hudsonyardsnewyork.com showcasing the creation of “New York’s Next Great Neighborhood.”

Stephen M. Ross, Chairman and CEO of Related Companies said, “The Hudson Yards represents the future of New York and the commencement of this preparatory work marks an important milestone in its development. Over 65 percent of Manhattan’s office stock is over 50 years old and New York City needs the modern, green, high-tech office space that only we can provide at Hudson Yards in order to retain our competitive advantage in the global market for corporate tenants. Over the past year we have made tremendous progress in developing the most commercially viable solutions for office tenants in New York. With unsurpassed transportation infrastructure, amenities, large flexible floor plates, and generous tax incentives we have created a compelling offering and the marketplace is responding.”

Mayor Michael R. Bloomberg said, “Hudson Yards is one of New York City’s greatest opportunities for growth. Today’s milestone means we will now begin to see activity on the site, as the creation of what will be the vibrant centerpiece of New York City’s next great neighborhood begins to take shape. The extension of the 7 subway line from Times Square to the Hudson Yards is on track, and together with what will be one of the City’s great open space boulevards, the seeds are being planted for the next major New York City destination.”

The 60,000 square foot Metals Purchasing Building was originally constructed in the 1930s in the freight yards that operated as part of the railroad system along Manhattan’s west side. This railroad supported the pier operations and transported goods up and down the west side. The Metals Purchasing Building was used to process, manufacture, and distribute various metal products. The building was also used for processing and manufacturing various metal products. When the demand for the metals operation no longer existed the building was converted to office space and used for back-office type operations. About 20 years ago the building was acquired by MTA by eminent domain and subsequently vacated.

Key transportation investments are underway throughout the area around Hudson Yards including the extension of the Number 7 subway line. The No. 7 subway will link the site to both local and regional rail transportation. This subway line connects to every major line in New York City, connecting Hudson Yards to the major subway nodes of Times Square, Bryant Park, and Grand Central Terminal.

Jay H. Walder, MTA Chairman and CEO said, “The extension of the 7 line is paving the way for a vibrant new district of our great city, continuing New York’s great tradition of leveraging public transit investments for economic growth. We’re focused on delivering this project on time and budget, and we’re thrilled to see activity on one of the most important sites in the district, the MTA’s Hudson Yards.”

The $2.1 billion subway extension is fully funded and under construction. Crews have finished digging the tunnels and are currently building the new station at the 34th Street and 11th Avenue that will be at the front door to Hudson Yards. The project is on budget and on schedule. The transit system testing will begin in 2013 and a grand opening is anticipated by the first quarter of 2014, at least a year before the first phase of Hudson Yards is opened.

Hudson Yards is the largest undeveloped single piece of property in Manhattan. The mixed-use master-planned community will include 13 million square feet of commercial and residential development designed with cutting edge sustainability features. The master plan comprises approximately 5,000 residences in nine residential buildings, up to four world-class corporate headquarter sites, a major destination retail complex, a 300-room five star hotel, unique cultural facilities, and a new 750-seat public school, all carefully planned around 12 acres of grand public open space.

Also underway is the conversion of the Farley Post Office into the new Moynihan Station for Amtrak. Hudson Yards is also minutes away from the region’s main rail transportation hub at Penn Station, the Hudson River ferry service, the West Side Highway, and the Lincoln Tunnel.

Jay Cross, President of Related Oxford Hudson Yards said, “We have seen a great deal of interest from large-scale corporate tenants and are excited to be taking the steps necessary to meet their aggressive timelines. Hudson Yards will represent New York’s premier mixed-use neighborhood, and we are progressing steadily. The public spaces, great cultural amenities, extraordinary destination retail center, hotels, thousands of new apartments with spectacular waterfront views, and a new 750-seat public school will offer something for all New Yorkers.”

The future development will be at the fulcrum of a major new open space network on the west side of Manhattan that will serve residents, workers and millions of visitors each year. Hudson Yards is strategically located at the northern terminus of the new High Line Park, with Hudson Park and Boulevard to the north and Hudson River Park to the west. The site is on the waterfront on the west side of midtown and will be Manhattan’s new gold coast for corporate and residential tenants.

Earlier this year, Oxford Properties Group, the real estate investment and development arm of the OMERS Worldwide group of companies, partnered with Related as general partners in the development. Together, Related and Oxford signed a contract with the Metropolitan Transportation Authority (MTA) for the 13 million square feet of development rights at the Hudson Yards. The development completed its zoning approval process in December of 2009.

For more information about Hudson Yards contact Joanna Rose at 212.801.3902 or visit www.hudsonyardsnewyork.com