PRAEDIUM GROUP ACQUIRES CONNECTICUT INDUSTRIAL BUILDING FOR $23.5 MILLION

July 8, 2003 - New York. The Praedium Group LLC, a New York City-based national real estate investment firm, announced today the acquisition of the Bristol Business Center in Bristol, Connecticut for $23.5 million, or $20 per square foot. The property, located at 780 James P. Casey Road, is a single story industrial building totaling 1.2 million square feet, and is currently 60 percent leased. The distribution facility is well located near I-84 and Route 8, and has direct access to the Boston Hartford rail line. An additional 90 acres of adjacent land zoned for industrial use was included in the acquisition.

Praedium's operating partner is Nicholas Bienstock of Savanna Partners, and the property was purchased from New York-based ABC Properties LLC. Previously, Praedium teamed up with Savanna Partners on the acquisition of Three Enterprise Drive, an industrial property located in Newburgh, New York.

Philip Tager, Director in the acquisitions group said, "We are very pleased to be working on another transaction with Savanna Partners. This investment is attractive to us due to the strong current return from solid tenants with long-term leases in place. Additionally, there is upside potential through the lease-up of vacant space, and we expect that this asset will attract other quality tenants looking for distribution space in this market area."

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.