PRAEDIUM GROUP AND SCANLANKEMPERBARD COMPANIES SELL RETAIL CENTER IN LOS ANGELES, CA AREA FOR $24 MILLION

January 15, 2004-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 Santa Fe Springs Plaza, a grocery-anchored retail center located in Santa Fe Springs, California. Built in 1981 and expanded in 1986, the property is located at the northeast corner of Telegraph Road and Carmenita Road directly across from the Santa Fe Springs Mall. The center contains approximately 164,700 square feet and is anchored by Ralph's Food Store. Current occupancy is 96 percent.

Steve Algermissen of Cushman and Wakefield represented the seller. The purchaser was represented by Newman and Associates. The property was purchased by a local investor.

Christopher Hughes, Praedium Group Principal, commenting, said, "We were attracted to this asset due to its location along major commercial routes within a densely populated urban infill neighborhood. Together with our partner, SKB, the rent roll was enhanced upon lease rollover, and various capital improvements were made. Ultimately, the asset became more appealing to the investor community as a result of these enhancements and in light of the high demand for grocery-anchored retail product."

"The acquisition, business plan implementation and subsequent sale of Santa Fe Springs Plaza is a textbook example of how SKB, a boutique, West Coast, real estate merchant bank, can, when teamed with New York-based yet nimble Praedium Group, produce an exceptional opportunity for both Praedium and SKB's investors," 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, Crenshaw Imperial Shopping Center in Inglewood, and Margarita Plaza in Huntington Park, California.

SKB Companies was founded in Portland in 1993 and is a leading real estate merchant banking and development advisory firm that acquires and funds development equity for 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.