PRAEDIUM GROUP AND SCANLANKEMPERBARD COMPANIES SELL MARGARITA PLAZA RETAIL PROPERTY IN LOS ANGELES, CA AREA FOR $11.7 MILLION

August 19, 2003 - New York and Portland, OR -- The Praedium Group LLC, a New York City-based national real estate investment firm and ScanlanKemperBard Companies, a Portland, Oregon-based real estate merchant banking firm announced today the sale of Margarita Plaza, a grocery-anchored retail center located in Huntington Park, CA. Built in 1989, the property is located at the corner of Santa Fe Avenue and Florence Avenue in the City of Huntington Park. It contains approximately 77,000 square feet and is anchored by Food-4-Less, a wholly-owned subsidiary of the Kroger Company. Current occupancy is 92 percent.

Matthew Sullivan and Michael Ross of Colliers Seeley in Los Angeles represented the seller. The buyer was MEESOB Investment Company, LLC and FESAS Investment Company, LLC.

Christopher Hughes, Praedium Group principal, commenting, said, "We were attracted to this investment because of the current income in place, as well as the property's location in an infill neighborhood with limited development potential for new competition. With our partner, SKB, we enhanced the physical appearance of the property through various capital improvements, and we stabilized the in-line tenancy component of the rent roll. These efforts made this asset very attractive to investors."

"Normally our hold period in partnership with Praedium is 3 to 5 years, however we were able to accomplish our business plan well ahead of this schedule" noted Robert D. Scanlan Principal of SKB. In 2001, a joint venture between SKB and Praedium acquired the 500,000-square-foot, 33-acre Borland Corporation office campus at 100 Enterprise Way in Scotts Valley, California. In 2002, they also teamed up to purchase 800 Wilshire Boulevard, located at the corner of Flower Street in downtown Los Angeles.

SKB Companies was founded in Portland in 1993 and is a leading real estate merchant banking and development advisory firm that acquires and develops properties throughout the western U.S. www.skbcos.com.

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 is currently investing in its most recent $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.