PRAEDIUM GROUP ACQUIRES TEXAS RETAIL POWER CENTER FOR $17.8 MILLION

July 11, 2003--New York--The Praedium Group LLC, a New York City-based national real estate investment firm, announced today the acquisition of the Richland Centre retail property in North Richland Hills, Texas for $17.8 million or $77 per square foot. Built in 1994 on 21 acres at the intersection of Loop 820 and Highway 183, Richland Centre comprises five single-story retail buildings totaling 230,000 square feet. The power center primarily houses large-format home furnishing stores and is currently 89 percent leased. Other tenants at the property include national credit retailers such as Ross Dress-for-Less, Barnes & Noble and Oshman's Super Sports.

Praedium's local operating partner is Westmount Realty Capital whose principals are Clifford A. Booth and Stephen H. Kanoff.

Philip Tager, Director on the Praedium acquisitions team noted, "We are delighted to be entering into our first joint venture transaction with Westmount Realty Capital, which has longstanding investment experience in this market. This was an opportunity to acquire an asset that offered strong current cash flow and additional upside through the lease-up of two vacant spaces."

Praedium also recently completed the disposition of a five-property retail portfolio located throughout the Dallas/Ft. Worth metroplex. Bob Murray, Praedium's Vice President of acquisitions and investment management for the Central U.S. said, "This is another transaction that is consistent with Praedium's investment strategy of acquiring properties with upside potential and building asset value."

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.