Paul Hastings Represents Morgan Stanley Real Estate in $1.9 Billion Acquisition of Glenborough Realty Trust

August 21, 2006

Paul Hastings Represents Morgan Stanley Real Estate in $1.9 Billion Acquisition of Glenborough Realty Trust

San Francisco, CA (August 21, 2006) - Paul, Hastings, Janofsky & Walker LLP (Paul Hastings), a leading international law firm, has represented Morgan Stanley Real Estate in its acquisition of Glenborough Realty Trust, a real estate investment trust with a portfolio of 45 properties encompassing eight million square feet across the United States. The transaction, which is expected to close during the fourth quarter of 2006, is valued at approximately $1.9 billion.

The Paul Hastings team, lead by partner Charles Thornton, also included partners Phil Feder and Walter Schleimer, and associates Chris Busselle, Scott Berg and Kelly Mathews.

Under the agreement, Morgan Stanley Real Estate will acquire all of Glenborough's outstanding common stock for $26.00 per share in cash through a merger transaction. Holders of limited partnership units in Glenborough's operating partnership will receive $26.00 per unit in case or, at their election, will have the right either to common units in the surviving operating partnership similar in their terms to the existing common units or, alternatively, to receive a preferred unit in the surviving operating partnership. The total consideration of approximately $1.9 billion includes repayment or assumption of Glenborough's existing debt and redemption of its Series A convertible preferred stock pursuant to its terms. The agreement contemplates that Glenborough will continue to pay regular quarterly distributions at an annualized rate of $1.10 per share and per unit through the closing of the merger with a pro rated distribution for the quarter in which the transaction closes being included in the merger consideration.

About Morgan Stanley Real Estate:  Morgan Stanley Real Estate is comprised of three major global businesses: Investing, Banking and Lending. Since 1991, Morgan Stanley Real Estate has acquired $87.7 billion of real estate assets worldwide and currently manages $50.9 billion in real estate on behalf of its clients.

About Paul Hastings Corporate Department: Teams of Paul Hastings' corporate attorneys provide clients with the sophisticated, cross-border legal and business expertise they need to finance and operate companies. The firm's Securities and Capital Markets, M&A, Lending, Project Finance, Private Equity, Investment Management and Securitization practices are nationally and internationally ranked. Paul Hastings' attorneys are experienced in every aspect of modern transactional practice in virtually every industry and service sector. Clients include major financial institutions, domestic, international, public and private companies.

Paul Hastings Janofsky & Walker LLP, founded in 1951, is a leading international law firm with over 1,000 attorneys in 17 offices. The firm serves a diverse client base including many of the top financial institutions and Fortune 500 companies, supports clients in all of their legal needs and offers deep capabilities in Banking and Finance, Capital Markets, Corporate/M+A, Litigation and Dispute Resolution, Intellectual Property, Project Finance, Investment Management, Real Estate, Labor and Employment and Tax Advisory Services. For additional information, please visit our website at www.paulhastings.com.

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