PRAEDIUM GROUP ACQUIRES 6-PROPERTY PORTFOLIO IN CENTRAL FLORIDA FOR $17 MILLION

July 7, 2003--New York--The Praedium Group LLC, a New York City-based national real estate investment firm, announced today the acquisition of the Southeast Residential Portfolio II, a six-property, multi-family portfolio located in various central Florida cities for $17 million, or $26,500 per unit. This is the second such portfolio that Praedium has acquired during the past two years.

Praedium's local operating partner is Affirmative Equities. The portfolio was purchased from Equity Residential Properties of Chicago.

The apartment complexes have a current average occupancy of 88 percent. The properties were built in the 1980s in modular style, and comprise 642 units in 1 to 3-story buildings. A major capital improvements program to improve curb appeal will be undertaken immediately. Additionally, as units turn over, interior renovations will be made to enhance the competitive standing of the apartments.

Brandywyne East and the Landings Apartments are located in Winter Haven, FL. Sky Pines I & II and Woodlands I & II are located in Orlando, FL. Clearlake Pines II and Morningside are located in Cocoa and Titusville, FL.

Praedium acquired a similar multi-family portfolio with Affirmative Equities in 2001. Those 19 properties contain 1,221 units and are located in Orlando, Tampa and the surrounding areas, with one property in Savannah, GA.

Frank Patafio, Praedium Group CFO stated, "We are very pleased to be entering into another portfolio acquisition with Affirmative Equities. This investment opportunity allows us to enhance value as we give the properties a needed facelift. We expect to manage the assets more effectively as a whole, benefiting from the economies of scale attributed to both portfolios, and by leveraging our previous experience with this property type in central Florida."

The Praedium Group is a real estate investor focusing on underperforming and undervalued assets throughout North America, with more than $2 billion in total investments to date. Praedium was formed in 1991 with a leading international investment bank as its sole investor.

Building on the experience and exposure gained through this original investment program, Praedium has been a sponsor of commingled real estate private equity funds since 1994. The funds sponsored by Praedium have attracted investors that include public and corporate pension funds, financial institutions, insurance companies and endowments.

Praedium recently closed on a $465 million real estate private equity fund, Praedium Fund V. This equity will be leveraged to acquire $1.5 billion in properties. The fund will invest in mid-cap assets throughout the United States and Canada in the $10 to $70 million range, targeting multi-family, office, retail and industrial property types. For more information please see www.praediumgroup.com.